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SAUDI
ARAe>IA
&AHRAIN
QAl"AR
2 Risk vs. Reward
For multinational companies operating in the Middle East,
risk management has special significance. Alumni working in
Iraq share their thoughts on the opportunities and risks asso­ciated
with doing business in one of the world's most contro­versial
regions.
On the Cover: Businesses operating in the Middle East have to
consider the trade-offs - the balance between risk and reward.
Just how much risk is worth the potential pay-off?
Left: Crowds and cars compete for space in a street market near the
Central Bank of Iraq in Downtown Baghdad on May 29, two months
after the Iraq war was initiated. Photo by Thomas Hartwell, USAID.
Competitive Edge
More than 80 percent of alumni who participated in an
online language and culture survey said that foreign language
skills provided them with a competitive career advantage.
12 5-Year Roadmap
Thunderbird's strategic plan draws upon the School's
international heritage, emphasizing global expansion, diverse
programs and a growing emphasis on working professionals.
15 Flying High
F-16 fighter pilot Luis Villanueva '02 soars to new heights in
his position with Florida-based Marsh Inc.
16 An Ounce of Prevention
Tony Young '03 learned the value of having overseas medical
and travel assistance coverage and urges traveling T-birds to
do the same.
18 Relishing the Rewards
T-birds share their passion as corporate citizens, leaving last­ing
imprints on the communities and initiatives they touch.
20 Creative THINCing
Student-led think tank provides out-of-the-box solutions to
corporations worldwide and organizes an event to crown the
most innovative MBA team in the world.
26 Emerging Global Leaders
Thunderbird's Executive Education programs prepare working
executives for the rigors of international management.
Center spread • Report to Investors
28 T-bird News
34 Network News
41 Cl ass Updates
THUNDERBIRD MAGAZINE
Volume 56, Number 1, 2003
A publication of the Marketing and Communica tion
Department ofTIlllllderbird, TIle American Graduate
School of International Management, 15249 N. 59lh
Avenue, Glendale, AZ 85306-6000
INTERIM DIRECTOR, MARKETING AND
COMMUNICATION DEPARTMENT
Susan Coffrolh
ACTING EDITOR
Melissa Crytzer Fry
CONTRIBUTORS
Bealrice Bernescut '90, Silvia Cannagnani,
Susan Coffrolh, Nelda Crowell, Melissa Crytzer Fly,
Kristen Jarchow, Terrie LoCicero, Jessica McCann,
Steven Misshu la '99, Merry Montgomery,
John Staczek, Cheryl Sweel
DESIGN
Pat Kenny Graphic Design
VICE PRESIDENT FOR INSTITUTIONAL ADVANCEMENT
AND DIRECTOR OF DEVELOPMENT
Richard Tollefson, Jr. '83
ASSISTANT VICE PRESIDENT OF ALUMNI RELATIONS
Anne-Marie Nelson '95 (EM IM)
Submissions may be emai led to Susan Coffrolh
at coffrotS@lhunderbird.edu; or sent by fax to
(602) 978-7626.
Thunderbird is the oldest graduate management
school in the United States focused solely on preparing
international business leaders. Ranlled among the best
in the world by U.S. News and World Report, Wall
Street Journal and Business Week tile School offers
a unique curriculum t.hat emphasizes cross-cultural
communication, language and world business sliills to
compete in today's global economy.
More tlwn 33,000 men and women in .139 different
countries have graduCl ted from Thunderbird since
1946. Thunderbird is accredited by AACSB­International
Association for Management Education,
the North Centl"lll Association for Colleges and
Schools lind the European Quality Improvement
System (EQlIIS).
VISIT THUNDERBIRD AT www,thunderbird.edu
PRESIDENT'S MESSAGE
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Stepping up to the Challenge
The ability of people and their organizations to react responsibly in the midst of
difficult situations is a topic that has fascinated scholars for hundreds of years.
The global society we live in continues to deliver challenges to all of us at an increas­ing
rate.
The Thunderbird community has shown a tenacity and spirit of strength character­istic
of the School's rich history. In the midst of a challenged economy, the SARS epi­demic,
global political unrest and shifting demographic trends, we have had to deal
with the effects on enrollment, our alumni and our general business situation.
Such challenges have energized the Thunderbird community, creating an almost
palpable excitement in the air. Students have revived campus clubs, sponsoring
national and global events that are attracting international corporations, alumni and
guests to campus by the hundreds. Faculty and staff have devoted countless hours to
their work, resulting in top rankings in U.S. News & World Report and The Financial
Times. A new Center for the Cultures and Languages ofInternational Management will
begin operations in the fall, thanks to the generosity of Sam Garvin '88 and his wife,
Rita. The School also accepted its largest enrollments in the Global MBA for Latin
American Managers and Executive MBA in International Management programs in
history. These accomplishments parallel the School's strategic direction and 5-year
plan, which Board members approved in April and I share in this issue.
And, finally; Thunderbird's generous volunteer and financial supporters - alumni,
friends, corporations, foundations and government - have raised the bar, even during
these troubled financial times. New financial commitments to the School during
2002-2003 totaled more than $11 million - a 180 percent increase. In appreciation,
we recognize your contributions in our Annual Report to Investors. As we ride this wave
of optimism during challenging times, I look to the future with excitement and prom­ise,
knowing that our constituents rise to the occasion under high-pressure situations.
SAUD'
ARAe>t A
~AHRAIN
QA'fAR
.M ID D
:E
BY JESSICA M CCANN
• REWARD
Contemplating the Trade-Offs
of Conducting Business
in the Middle East
dentifying known hazards, anticipating unforeseen disasters and safe­guarding
your company and your employees against all of them. It's the
. definition of risk management, and it's an integral part of any business.
For those businesses operating in the Middle East, however, risk manage­ment
has special significance. That's because you also have to consider the
trade-offs, the balance between risk and reward. Just how much risk is
worth the potential pay-off?
There are two distinct types of risk man­agement.
One deals with financials - credit
risk, market risk, operational risk. These vari­ables
can be calculated, measured, analyzed.
The other type of risk management deals
with unexpected or accidental losses. It's
more a matter of safety and security, and that
is measured in a somewhat dif­ferent
way.
"Even after seeking the opin­ions
of experts and attempting
to quantify the threats facing a
business, the decision to enter
any particular geographic area
depends greatly on the manag­ds
own gut feelings," said John
O'Connell, a Thunderbird pro­fessor
of international insurance
. and the c.v. Starr Chair in International Risk
Management. "How much risk, how much
responsibility, do you want to take on?"
What sort of gut feeling does the average
global executive get when contemplating
business risk and the geopolitical turmoil in
the Middle East? Queasiness, it would seem.
According to a survey released by the World
Economic Forum in June, business confi-dence
continues to be deeply affected by the
global geopolitical situation. The survey
found that of the one-third of businesses that
had put investment plans on hold since the
Iraq war, 75 percent still had not restarted
investment; and 30 percent overall are pes­simistic
about the future business outlook.
Many T-birds, on the other
hand, appear to have iron stom­achs.
In an informal alumni
opinion poll conducted on My
Thunderbird (MTB) in July, slight- o
~ Iy more than 80 percent of ..i
respondents believed the poten- ~
tial rewards for multinationals ~
z
operating in the region are u:l
I- greater than the potential risks in ~
at least a few, if not most, Middle -
East countries. (See Risky Business? sidebar on
page 5 for more results of the opinion poll.)
Take Iraq. Some T-b irds believe so strongly
in Iraq's potential that they're working in the
country as expatriates, despite the potential
risks involved. Lewis Lucke '77 is the United
States Agency for International Development
(USAlD) mission director in Iraq.
"We're getting people mobilized and into
Far left: A U.S. Army
sergeant guards the
entrance of a
computer center at
Iraq's Ministry of
Finance to prevent
possible looting
(May 30). This page
(left): As life regains
a sense of normalcy,
an Iraqi man sells
watermelons at a
roadside stand in
central Baghdad.
Above: Iraqi children
at Basra International
Airport water treat­ment
facility.
FALL 2003 THUNDERBIRD MAGAZINE
Clockwise from top: Lewis Lucke '77 outside the Coalition
Provisional Authority headquarters in the former Iraqi
Republican Guard Palace in Baghdad. As vice president of crisis
management for AIG, Diane Borden '92 traveled throughout
the world, including many countries in the Middle East. Here,
she visits a Syrian mosque wearing a traditional burka and
scarf, demonstrating her respect for the local customs of the
community. Randy Jackson '97 (wearing a white hardhat) is
pictured on location at Baghdad
International Airport. He is on
assignment with the Bechtel Corp.
working on USAID projects to
reconstruct Iraqi infrastructure.
Opposite: Pictured in South
Kalimantan, Indonesia, Steven
Moore '00, a program officer with
the International Republican
Institute (IRI), spent the last year
and a half working there to help
foster democracy. Moore and IRI
co-workers are now helping to
bring democracy to Iraq.
the country as quickly as we can," said Lucke, who has been working
on reconstruction plans with his team since October 2002, when the
conflict in Iraq began to appear imminent.
The USAID Iraq program began operations in Washington, D.C.,
then moved to Kuwait in January. Today, about 50 staff members are
headquartered in Baghdad, with smaller hubs operating in Mosul in
northern Iraq and Basra south of Baghdad. Roughly 350 contractors
and grantees are also in the country working to provide humanitarian
and reconstruction assistance to the people of Iraq - to encourage
growth, support democracy, and restore health and education systems.
"It has been challenging, but we are getting a lot done and we have
an awful lot of cooperation from the Iraqis," stressed Lucke, whose 24-
year career with USAID has taken him to Tunisia, Mali, Haiti and
Jordan, among other countries.
"The success of our program really depends on being able to make
it an Iraqi program," he said. "We want Iraq, with all its advantages, to
be able to take its place in the world as a peaceful and productive
neighbor in the Middle East," he said. "It's a group of talented, smart
people who are striving for something better for themselves and their
kids. I know that sounds sort of 'pie-in-the-sky; but it is the truth."
Steven Moore '00, a program officer with the International
Republican Institute (IRI), agrees.
COUNTRY SNAPSHOTS
4
UNITED ARAB EMIRATES (UAE)
The UAE's per capita GOP is not far below those of
leading West European nations. Its generoSity with
oil revenues and its moderate foreign policy stance
have allowed the UAE to playa vital role in the
affairs of the region.
Populat ion: 2.5 million
Literacy rate: 79 %
Per capita GDP: $21.100
Key industries: petroleum, fishing, petrochemicals,
construction materials
Export partners: Japan 30%, India 7%, Singapore
6%, South Korea 4%
THUNDERBIRD MAGAZINE FALL 2003
"I think that Iraq is one of the countries
with the most promise in the Middle East,"
he said. "This is a time of great opportunity
for Iraq. The international community is focused on helping them
develop, and they have tremendous natural resources. It will be inter­esting
to see what they do with this time as a people."
The IRI is a nonprofit, nonpartisan organization dedicated to
advancing democracy, freedom, self-government and the rule of law
worldwide. It has active programs in more than 50 countries.
Moore spent the last year and a half working with the IRI in Indo­nesia
to help bring democracy to the country. After his successes
there, he has turned his sights to Iraq. Moore is based at IRI's
Washington, D.C., offices and took his first data-gathering trip to Iraq
in August. He is eager to set up shop in Baghdad and begin working
with the local community.
The short-term business opportunity in Iraq is significant. The
USAID reconstruction budget is expected to total more than US$2.4
billion, with total reconstruction estimates ranging from US$20 bil­lion
to $85 billion. According to federal law, USAID contracts must be
awarded to American firms, but the subcontracts are open to bids from
companies around the world. And the need is diverse. A request for
proposal (RFP) in June sought to foster economic rehabilitation and
reform. Among the top contenders are companies such as Booz Allen
Hamilton, a global leader in strategy and technology consulting;
Deloitte & Touche, one of the nation's leading professional services
IRAQ
The country's future is dependent upon the pace of
reconstruction, the lasting commitment of the international
community and the fortitude of the Iraqi people. Humani­tarian
need and damage to infrastructure as a result of
the conflict have been far less than originally feared. Yet,
significant political, economic, humanitarian and security
challenges certainly exist and will remain for some time.
Population: 25 million
Literacy rate: 40 %
Per capita GDP: $2,400
Key industries: petroleum, chemicals, textiles,
construction materials, food processing
Export partners: Un ited States 60%, France 8%,
Netherlands 7%, Italy 6%
firms; and IBM Global Services, an information technologies pioneer.
Other RFPs seek programs to expand agricultural productivity; to
improve the primary, secondary and higher education systems; and to
provide medical supplies and health services and training.
Other bright spots are on the horizon in the Middle East, as well.
Jordan's membership in the World Trade Organization (WTO) in 1999
and its subsequent free trade agreements with the United States and the
European Union (EU) have helped boost trade by hundreds of millions
of dollars and created thousands of new jobs in the country.
Negotiations are under way between Morocco and the United States for
a similar free trade agreement, and talks with Bahrain are likely to begin
next year. In addition, Saudi Arabia, Lebanon and Yemen are negotiat­ing
at the WTO for membership. It all adds up to increased trade and
increased opportunity - for local and multinational companies alike.
Despite the promising economic and political reforms that have
begun to take shape in the Middle East, however, the region is sti ll
riddled with risk.
"It's a tough neighborhood, no matter what you do," said Lucke. "You
can have policies and perfect approaches, which really don't exist yet in
very many places here, and you're still going to have some of the prob­lems
that are rooted in the religious conflict and the territorial disputes."
It is certain that violence and conflict have a negative influence on
trade and foreign investment; and that influence extends far beyond
the conflict-ridden countries themselves, spilling over to all of their
neighbors. Continued on page G
I / .
QATAR
In 2001, Qatar resolved its langstanding border disputes with
bath Bahrain and Saudi Arabia. Oil and natural gas revenues
enable Qatar to have a per capita income not far below the
leading industrial countries of Western Europe.
Population: 800,000
Literacy rate: 80 %
Per capita GOP: $21,200
Key industries: crude oil production/ refining, fertilizers,
petrochemicals, steel reinforcing bars, cement
Export partners: Japan 43%, Singapore 8%, South Korea 6%,
United States 4%, UAE 2%
Unemployment rate: 2.7%
Editorial note: "Snapshot" statistical data obtained from 2002 World Factbook.
Same unemployment information was not available.
RISKY BUSINESS?
T-birds Don't Think So
Many T-birds are optimistic about the rewards of conducting
business in the Middle East, according to an informal alumni
opinion poll conducted on My Thunderbird (MTB) in July.
Slightly more than 80 percent consider the potential rewards to
be greater than the potential risks in at least a few, if not most,
Middle East countries.
Furthermore, nearly 80 percent of respondents believe that,
compared to doing business in other regions of the world, the
level of risk for multinational companies operating in the Middle
East is either "about the same" or "somewhat higher." About 17
percent deem the level of risk to be "much higher" in the region.
What countries hold the most potential? Iraq, Turkey, Jordan,
Qatar and United Arab Emirates (UAE) were among those noted
most frequently.
Angelina Sarah '02, a citizen of the United States who was born
in Syria, wrote, "My general opinion is that Syria and other Middle
Eastern countries are an untouched market by most U.S. busi­nesses.
The Europeans have been taking advantage of that for
A .. d fi d many years." maJonty ... i enti 'e A majority of respon-resolution
of the Israeli- dents (68 percent)
I identified resolution of
Pa estinian conflict as the the Israeli-Palestinian
most critical issue in bringing
stability to the region, far out­weighing
terrorism, expanding
free trade and rebuilding Iraq.
conflict as the most crit­ical
issue in bringing
stability to the region,
far outweighing the
issues of fighting terror­ism,
expanding free
trade and rebuilding Iraq. Several respondents also added democ­racy
to the mix, citing the need for transparent governments and
fair legal systems in bringing stability to the Middle East.
Mark Fritz '02, a trade marketing analyst working for Philip
Morris International in Tokyo, believes opportunity in the Middle
East is greater than the risk. Yet, regarding stability in the region,
he wrote, "It won't be for at least a generation until those in power
move away from Islamic conservatism and begin to integrate
Western culture. Then change can occur."
More than 60 alumni responded to the online poll during a
two-week timeframe. Almost three-fourths had some personal or
corporate interest in the Middle East, including past work experi­ence
or a desire to work there in the future. Respondents' countries
of origin included China, Ecuador, France, Germany, India, Japan,
Jordan, Mexico, Morocco, Russia, South Korea, Syria and Turkey;
about 60 percent ofrespondents were born in the United States.
-1M
JORDAN
Aggressive economic ref arm efforts since 1999, including memo
bership in the WTO and free trade agreements with the United
States and EU, have helped improve productivity and put
jordan on the foreign investment map.
Population: 5.3 million
Literacy rate: 87 %
Per capita GOP: $4,300
Key industries: pharmaceuticals, petroleum refining, cement,
potash/ phosphates, light manufacturing,
tourism
Export partners: India 11%, United States 10%, Saudi Arabia 6%,
Israel 4%
Unemployment rate: 16%
FALL 2003 THUNDERBIRD MAGAZINE
"The continuing frustration in Jordan is Left: Iraqi children stand outside the National standard precautions - he varies his daily
schedule, rotates with his co-workers the cars
he takes to work, and carries extra cash with
him when things heat up, in case he needs to
pay exorbitant amounts to leave the country.
More importantly, though, he stays in tune
with the local community.
that when something goes boom in any part
of the Middle East, investors stay away and
tourists stay away," said Lucke, who served as
USAID mission director in Jordan from 1996
to 2000, a pivotal time for economic reform
Examination grading center in Baghdad that is
occupied by u.s. fo rces. Right: An Iraqi
telecommunications building that suffered
and growth in the country.
damage during the war lies in ruins in central
Baghdad. Forces are working to restore telephone
service to the city of 5 million.
When it comes to international risk man­agement
in general, there are many factors and variables to take into
account - from natural and environmental hazards to crime and
endemic disease. However, when it comes to the Middle East, political
instability and terrorism concerns top the list, especially for American
and other Western interests.
In many respects, risk management can be characterized as risk
avoidance. It's a process of identifying potential risks and then taking
steps to avoid them. When risk is unavoidable, a number of manage­ment
tools can help mitigate or reduce its potential impact on a com­panyand
its employees.
Insurance is one important tool, according to Diane Borden '92,
vice president of AlG's Private Client Group. AlG is the world's lead­ing
international insurance and financial services organization, with
operations in approximately 130 countries. Before her current posi­tion,
Borden was vice president responsible for worldwide crisis man­agement
operations.
AlG's crisis management products and services include kidnap and
ransom insurance, terrorism insurance, political evacuations, child
abduction negotiations and crisis containment. While such insurance
provides an important safety net for companies and individuals,
Borden stressed that the consulting and education aspects of AlG's
services are just as important, if not more.
"When you're in a high-risk environment, often if you just do one
simple thing, such as taking a different route to work everyday, you can
reduce your risk by as much as 75 percent," she said.
That has certainly been Moore's experience working in Indonesia,
and he expects the same to be true in Iraq. IRI provides its employees
with a whole range of coverage, including evacuation insurance. That's
all well and good, Moore said, but he still focuses more on ways to
avoid needing it. ''I'm glad we have it, but ifI have to use it, then things
have gone too far. "
To keep safe in volatile environments, Moore exercises what he calls
6 THUNDERBIRD MAGAZINE FALL 2003
"Talking to people on the ground is always
the best source of information," he said. "If you base your decisions
on what the media says, you often have things skewed in the most hys­te.
rical sense. I learned early that the media's assessment of Indonesia
is extreme. It was actually a ve.ry peaceful place for the most part."
That highlights another important risk management tool - infor­mation
. Multicultural communication classes, defensive-driving
courses and site security surveys all playa vital role in mitigating risk.
In addition, Borden encourages clients to be good corporate citizens.
"Be culturally aware, promote economic growth in the host coun­try,
" she said. "Invest in local projects, local schools. If you're known
as being a part of the community, you're less likely to be a target."
O'Connell, who has more than 30 years experience working, teach­ing
and consulting in inte.rnational insurance risk management, agreed.
"When you go into a particular country, the best risk management you
can do is to become a part of the local scene of that country."
A multinational company with operations in the Middle East also
must properly train and fu lly inform its employees and their families.
Those individuals must understand and respect the local laws, tradi­tions
and culture of their host country - and they must understand
the potential risk they will encounter if they do not.
"A Western woman, who has full freedoms in the United States,
needs to know that if she's going to Saudi Arabia, she's riding in the
back seat of the car," said Borden. "If she doesn't, she is going to get
arrested ."
The risks to multinationals conducting business in the Middle East
are indeed real - from terrorism and political instability to religious
conflict and the continued threat of war.
Yet, with cultural awareness, informed employees and effective risk
management, the potential rewards can be just as real- from the sat­isfaction
of bringing hope to a long-oppressed people, to the finan­cial
reward of provid ing products and services in new, la rgely
untapped markets. •
Top to bottom: Street
scene in Dyarbakir,
Turkey, March 2003.
Street vendor Cengiz
Budus (left) with
friend. Kurdish politi­cal
activist Mehmet
Ates at the Kurdish
Cultural Center in
Dyarbakir.
On March 21, 2003 - three days after
the start of the Iraqi conflict - I set
off for the remote Turkish city,
Dyarbakir, which lies in the southeastern
region that borders Iraq, Iran and Syria. A
close friend of mine is the bureau chief for a
small but influential newspaper, and she
thought it would be a great opportunity for
me as a photojournalist. We were, after all,
heading into the control center for the
Turkish military, and tensions were high.
I spent most of my
time interacting with
the local Kurdish pop­ulation.
But, in a few
cases, I was able to go
along on some inter­views
with local
Kurdish leaders. One
such interview was
with Mustafa Karahan,
the local chairman of
DEHAP, a Kurdish
political party that a
Turkish state court
moved to abolish this
past spring. One
evening, Karahan
described to us the
challenges of being
Kurdish in Turkey. His
organization wants
Kurdish concerns to be
addressed in Turkish parlia­ment
- such as recognition
of the Kurdish language,
which, until recently, had
been outlawed.
There was no bitterness in
his description, but his frus­tration
was clear. I couldn't
help but ask Karahan if
he was nervous about
being arrested. This
elicited a round of
clluckles - apparently,
I was showing my
naivete. He explained
that being a Kurd in
Turkish politics nor­mally
meant having
been arrested - espe­cially
if one was part of
the older generation of
PHOTOS AND TEXT BY STEVEN MISSHULA '99
political activists. Karahan had been arrested
numerous times and jailed for more than 10
years for his political activity. His assistant,
who was about my age (early 30s), also had
been incarcerated for a few years.
Other Kurds generally expressed the feeling
that, although war is regrettable, they
admired American bravado. They were rela­tively
grateful, because they felt that their
Kurdish brothers in Iraq would be better off
with a deposed Ba'athist regime.
Many local villagers also expressed their
concerns about the economic impact of the
war. Turkey had lost billions of dollars worth
oflegal (and illegal) petroleum trade after the
1990 Persian Gulf War.
There had been an enormous illicit trade of
petroleum across the border, they explained,
which afforded them an unrecognized
income. During the months leading up to the
war, the border had been closed to all truck­ing
without a special license. In one village,
trucks and their tanks were strewn about like
relics at a junkyard. Thus, the local economy
ground to a halt, imposing a hardship on the
local population and rousing resentment
against the United States.
A Kurdish street vendor from Dyarbakir,
Cengiz Budus, responded to that resentment
by saying he thought it was entirely too
myopic. He understood the economic hard­ship
that villagers are suffering (and insisted
he was suffering economically, as well), but
was happy for the American-led action in Iraq.
He believed that a democratic influence in the
area would be helpful to the entire region.
The Kurdish region of Turkey still has sig­nificant
hurdles to overcome. In July, the U.S.
military detained 11 Turkish soldiers in Iraq
for purportedly conspiring to kill a Kurdish
leader there. This has raised tensions between
the two NATO allies, whose relationship has
diminished since Turkish parliament failed to
grant the U.S. military the right to use Turkey
as a launch pad for action in Iraq.
Yet, southeastern Turkey seemed to me to
be ripe with bright, enthusiastic individuals
who are full of ideas and energy for improv­ing
their region's political and economic situ­ation.
Years of struggle and insurgency have
made the people eager for normalcy - both
politically and economically. I hope I will
soon return to the region to witness their
progress. •
An aspiring
photojournal­ist,
Steven
Misshula '99
first traveled to Turkey
in january to photo­graph
a story about a
Turkish documentary
addressing the plight
of the country's home­less
children. Misshula,
who earned a bache­lor
of fine arts degree
in photography from
New York University's
Institute of Film and
Television in 79 92,
eagerly accepted an
invitation to return to
the country several
months later to cover
events of the
Coalition-led conflict
in Iraq.
Above: Pictured is
Mustafa Karahan,
chairman of the
political party, DEHAp,
an offshoot
of another political
party that had been
closed by the Turkish
government.
FALL 2003 THUNDERBIRD MAGAZINE
Alumni Language Survey Affirms
Thunderbird Experience
I , Engli'h the only \,ngu'ge you need in
international business today?
T-birds answer with a resounding no,
according to a recent Internet survey on lan­guage
and culture. Of the 581 alumni who
responded, 82 percent said they gained a
competitive advantage in their careers from
their foreign language skills, while 89 percent
benefited from their cultural knowledge.
Those responses shouldn't surprise anyone
familiar with Thunderbird's curriculum. But
the catalyst for the study might, said Christine
Uber Grosse, Ph.D., Thunderbird professor of
business communication and developer of
the language survey.
"I overheard someone at Thunderbird
remark that English is the language of inter­national
business today, so foreign languages
aren't really necessary. I was astounded,"
recalled Grosse, who speaks Portuguese, Span­ish
and French, along with some German and
Arabic. "The monolingual view has always
been accepted in part of the American busi­ness
community, but I was surprised to hear it
at Thunderbird."
emeritus of applied linguistics and TESL
(Teaching English as a Second Language),
organized the conference of 10 researchers,
sponsored by CIBER (Center for International
Business Education Research, funded by Title
VI of the U.S. Department of Education).
Grosse posed the question: Do foreign lan­guage
skills and cultural knowledge give business
executives a competitive advantage in their
careers? The positive feedback she received
spurred her to submit a proposal to the Thun­derbird
Research Center, which awarded her a
grant in March 2002.
"No previous empirical study had investi­gated
this question," said Grosse, author and
co-author of several studies focusing on busi­ness
language.
THE PERFECT SAMPLE
The survey was developed in winter 2002
and piloted in January 2003 through Thun­derbird's
North America and Europe/Middle
East/Africa alumni councils. Anne String­fe
llow, Ph.D., assistant professor of global
business, recommended Surveypro.com,
THE RESULTS
BY TERRIE J. LOCICERO
Internet-based sofrware for survey develop­ment,
delivery and data reports. After some
discussion with colleagues, Grosse decided
that the best pool of respondents would be
alumni. After all, they had chosen Thunder­bird
for its pioneering tripartite curricu­lum.
And who would know better than T­birds
whether their language skills had
helped their careers?
Grosse teamed up with Anne-Marie
Nelson '95, assistant vice president of Alum­ni
Relations, who helped refine the survey
questions and provided access to 2,500 ran­domly
selected alumni from the classes of
1970 to 2002. In February 2003, T-birds were
contacted via e-mail, and asked to complete
a web-based survey; 581 responded, with
participation from every class year.
Respondents ranged in age from 25 to 64
years, with 71 percent male and 29 percent
female. (See The Results sidebars for addition­al
survey results.) More than one-third said
they use their skills daily, and 13 percent said
they use them frequently.
For the almost 50 percent who said they
occasionally, seldom or never use their lan­guage
skills, they unanimously stressed that
such skills add value - even when they don't
have many occasions to use them. One
respondent said, "Although [ don't frequently
use my Spanish language skills, the knowl­edge
of another language greatly enhances my
credibility with all foreign counterparts and
clients." Another stated, "At senior inter­national
business levels, English is spo­ken
by everyone, but the knowledge of a
The School has offered language
instruction for more than 50 years, in a
variety of settings, from its on-campus
MBA-related language programs and its
overseas immersion and exchange pro­grams
to its Executive Education offer­ings.
Until recently, when a non-language
degree track was introduced, Thunder­bird
was one of the few MBA programs
to require a foreign language.
The majority of respondents work in the United States
(66 percent) and Europe (17 percent). and are employed in
second language - especially by an
American - adds credibility when
working at an international level."
Grosse wondered whether the speak-er's
statement was true. Would mono­lingual
or marginally bilingual people
know what they were missing by not
knowing a foreign language? As a
researcher, Grosse felt that someone
should either prove or disprove this
assertion.
And in February 2002, she got the
opportunity, at a small UCLA-sponsored
seminar on research priorities in busi­ness
language education. Russ
Campbell, recently deceased professor
B THUNDERBIRD MAGAZINE FALL 2003
the banking/financial services; technology; consulting; and
industrial products/manufacturing fields. These mult ilin­gual
graduates reported speaking the follOWing languages:
PORTUGUESE 14%
JAPANESE 11%
CHINESE 9%
RUSSIAN 2%
ARABIC 2%
Grosse's research was presented at the GIBER Conference
on Business Languages and Communication in Miami,
Fla., on April 4, 2003. It also is scheduled for publication
in The Modern Language Journal.
COMPETITIVE EDGE
GAINED FROM FOREIGN
LANGUAGE AND CULTURES
Significantly, 89 percent of alumni
said that they studied a language while
they earned their master's degree at
Thunderbird. The rest waived the lan­guage
requirement because of prior
knowledge or study. More than half
said the edge they gained from foreign
languages was significant, while 28 per­cent
said they received some advantage
in their present job, or at some time in
their career. Only 18 percent reported
no gain from their foreign language
Continued on page 10
abilities. Grosse said the study also indicated
that proficiency in a language and degree of
familiarity with culture were related to a per­ceived
competitive advantage.
Some respondents felt a disconnect
because the language they had learned was
not the one they used later on in their career,
but a number of respondents said that fluen­cy
in any second language was valuable.
Commented one, "I only hire people who
have a good command of a language even if
we will not use that particular language skill
in the immediate future. It is the mental dis­cipline
and cultural enlightenment that sets
the Thunderbird graduate apart."
Of the 89 percent of alumni who reported
gaining a greater advantage from cultural
knowledge rather than from foreign lan­guages,
almost half (48 percent) reported
gaining a significant edge, while 41 percent
acknowledged some competitive edge
Curt Gruber '90 learned Spanish as a for­eign
exchange student in Uruguay and honed
his skills at Thunderbird. He first worked with
a promotional design agency, but kept search­ing
for a position that was international in
scope. He responded to an international mar­keting
ad for a Caribbean/Latin America
salesman for a scuba equipment manufactur­er.
Although the ad was in English, Gruber
submitted his cover letter and resume in
Spanish. "I delivered the resume in person,
but had to leave it with the receptionist," he
said. "Luckily, the director of international
marketing, who was Cuban, liked the cover
letter/resume and called the next day. Without
knowing Spanish, and without taking the
risk, my resume might have remained in the
pile destined for the garbage can." Gruber
used his Spanish daily in sales, until he was
promoted to marketing manager and new
from their cultural understanding. Just
11 percent said they received no
advantages from cultural skills on the
job.
THE RESULTS
Many alumni said that their cultural knowledge
had helped them at work to:
product development manager in Asia. He is
currently vice president of marketing for the
Chicago Rush Arena Football Team.
Alumni reported similar opportunities
because of their language and/or cultural
skills - citing travel opportunities, overseas
assignments, written or oral recognition, pro­motions
and raises. A few, however, remarked
upon the tendency of U.S. companies to over­look
the advantages of these skills. One said,
"I believe American firms continue to disre­gard
the value of foreign language study and
cultural studies, and I believe American firms
will continue to do so at their peril and loss."
Another commented, "". My experience in the
U.S. corporate world is that language skills are
a benefit at the time of hire, but play very lit­tle
part in decisions regarding promotions
and surprisingly little in obtaining foreign
assignments. Of the 50 or so expats working
in European headquarters, none spoke
any European language (except English)
at a functional level."
Of the sample, 281 responded with
additional comments, defining the
competitive edge still further. They felt
the advantages of foreign languages
and cultures benefited them for a vari­ety
of reasons, such as being a critical
factor in getting a job, helping to gain
trust of others, increasing their effec­tiveness
on the job and creating more
job opportunities.
FEEL COMFORTABLE WITH PEOPLE AND CULTURE 86 %
"The findings dearly indicate that
businesspeople do benefit professional­ly
from knowing another language and
culture," Grosse said. "Given the tight­ness
of the job market and the state of
the global economy, the competitive
advantage of foreign languages and cul­ture
could help MBA students and oth­ers
in their careers. Maybe it's time for
other business programs to follow
Thunderbird's lead." •
UNDERSTAND THE BUSINESS ENVIRONMENT 77%
GAIN RESPECT AND CREDIBILITY 65%
FUNCTION BETTER IN COUNTRY 66%
REDUCE CHANCE FOR MISUNDERSTANDING 68%
WORK ON MULTINATIONAL TEAMS
ENHANCE NEGOTIATION SUCCESS
56%
53%
Executive Language Programs Flourish
Twelve years ago, SK Group, a South Korean conglomerate, realized
its executives needed superb business English and global manage­ment
skills to compete more effectively worldwide. To meet this need,
the company sent senior employees to Thunderbird's Executive
Education Language and Culture Center (TLCC) for four months of
business English training and global management skills. The relation­ship
continues to thrive today.
TLCC, one of the fastest-growing programs on campus, provides
culture and language training for both pre-MBA students and execu­tives
who need to conduct business in countries and cultures different
from their own. It offers more than 50 programs a year, induding pre­MBA
intensive language programs, GMAT and TOEFL preparation,
industry-specific language courses and cross-cultural training and
negotiations. The format ranges from one-on-one and small group
training to on-site, company-customized training of one day or more.
Beth Stoops, TLCC senior director, said participants' needs have
changed somewhat since she designed the pre-MBA program in the
early '90s. "At that time, students enrolled because they were required
10 THUNDERBIRD MAGAZINE FALL 2003
to increase their English overall before going to Thunderbird or other
MBA programs. Now, one-third of Thunderbird students voluntarily
attend before starting the MBA program."
A similar trend is developing with Executive Education participants
as high-profile Japanese companies such as Fujisawa, Asahi Glass,
Itochu and Nomura Research flock to the School's English as a Second
Language (ESL) programs. "The Center also does a lot of expatriate
and repatriation training," said Stoops. "Often, they are executives
with more than 10 years experience. They may be up for a promotion
or they're doing a lot more business abroad and need to get this ski ll."
And it's Thunderbird's reputation that attracts them. Stoops cited
the example of an executive from a major oil corporation who had
taken a four-week Spanish course at TLCC four years ago. He had the
opportunity to work in Cameroon, but didn't speak French. His boss
was stunned when he turned down an offer to learn the language in
France and instead chose TLCC, saying, "I want the Thunderbird expe-rience.
I want the faculty and the service TLCC provides." - TIL
Language students
such as Yun-Ching
"Allan" Lin '03 and
Svetla Novoselska '03,
who assisted with
Professor Grosse's
study, will benefit
from services offered
by the new Garvin
Center.
New Garvin Center Supports School's Roots
L t. Gen. Batton Kyle Yount's dream is
alive and well, thanks to Samuel S.
Garvin '88, and his wife Rita, whose
recent $5 million gift has helped establish the
new Garvin Center for the Cultures and
Languages of International Management.
"Our vision is for the Garvin Center to be
the premier institute for the study and teach­ing
of intemationallanguages and cultures as
they relate to business," said Garvin.
A resource for students, scholars, faculty
and executives, the Center will serve as a clear­inghouse
for research on topics such as lan­guage
instruction and its role in business;
instruments for assessing global language
competence; and the impact of language
competence and cross-cultural management
styles on business success. Expected to attract
additional best-in-class facuity, the Center
will be housed in the former International
Studies Building when it formally begins
start-up operations in fall 2003.
"The Center will sponsor activities that
reinforce Thunderbird's heritage of integrat­ing
business, language and culture within a
tripartite curriculum, helping to further dif­ferentiate
us from other MBA programs," said
David Bowen, Ph.D., dean of faculty and pro­grams.
Bowen heads the faculty steering com­mittee
that is developing the business plan
for the Center's operation. "We are particular­ly
interested in research that is relevant to the
practice of management," he said. "We want
the Center to be strong in scholarly creden­tials,
but we also want to have information
that will help managers do their cross-cultur­al
job better. Sam and Rita's gift allows us to
do that. We're lucky to have people who truly
believe in Thunderbird's mission behind us."
The donation positions the Garvins as
Thunderbird's most generous cumula­tive
donors to date. Garvin is the
founder, chairman and CEO of Con­tinental
Promotion Group Inc., a multi­million
dollar commercial fulfillment
business with clients in 26 countries.
Garvin credits the analysis, German lan­guage
and culture skills learned at
Thunderbird in helping him foresee
how the European Union and the euro
would benefit his business. A member
of the Thunderbird Board of Trustees,
Garvin, along with wife Rita, previously
donated $1 million to endow the first
distinguished professorship in global
entrepreneurship in honor of faculty
member Paul Johnson, who advised
Garvin as he developed Continental's
business plan.
"Sam and Rita target causes that will
have maximum impact on Thunderbird
and on the community," said Richard
Tollefson '83, vice president for Institu­tional
Advancement and director of Develop­ment.
"This gift exemplifies Sam's talent for
language and business, as well as his commit­ment
to the Thunderbird mission and experi­ence.
The Garvins believe that the original
mission of Thunderbird, as stated by its
founders, distinguishes the School from its
competitors and is the key to its success."
"What differentiates the Thunderbird MBA
in International Management from a regular
MBA is the focus on languages and cultures
in addition to the qualitative business skills
of a regular MBA," Garvin explained. "These
skills were instrumental in my suc­cess.
I hope to help give the same
skills to future Thunderbird stu­dents
for many years to come."
The Garvins plan to play an
active role in the creation of the
Center. - TIL
25% of alumni
responding to
Grosse's SU71ley
said that the next
language they
would study - if
they had time -
is Chinese.
Philanthropists
Sam '88 and Rita
Garvin will playa
key role in the new
Center's development.
FALL 2003 THUNDERBIRD MAGAZINE 11
BY SUSAN COFFROTH
Strategic Plan Calls for Shift in Programs, Resources
Welcome to 2002, when the educational landscape is characterized by uncertainty. Student demographics are changing. Enroll­ment
pressures are increasing. and job opportunities for graduates are waning. Technological changes in pedagogy and distri­bution
demand attention in order for institutions to remain competitive. Global competitors are emerging but so are alliances.
The part-time graduate management field is blossoming. The relevance of "international business" focus is changing. The only
thing that is certain is continued political, social and economic uncertainty.
Following page, top:
At a special dinner
gathering in April,
Thunderbird Board of
Trustees members met
with students to
discuss School
programs and future
direction.
"Educating Executives for a Tumultuous Global Environment: Risks and Opportunities"
(A white paper presented at the Thunderbird Global Business Forum and Archamps Campus Expansion Dedication Summer 2002)
It is August 2002 and against this backdrop, Thunder­bird
is embarking on a yearlong strategic planning
process that will shape the School's future for the next
five years.
It's a comprehensive process that involves all of the
School's stakeholders. It begins with strategy sessions
with the Thunderbird Board of Trustees, the Thunder­bird
Global Council, the Thunderbird Alumni Associa­tion
Global Board, the Thunderbird Europe Board and
students. Along the way, it involves faculty and staff and
alumni councils around the world.
Months of meetings with stakeholders and numerous
rewrites and revisions later, the Strategic Plan 2003-2008
chans). "A picture was emerging that would shape the
School's future," said CFO/Chief Administrative Officer
Tim Propp. "Our forecast pretty well laid out our chal­lenges,
including a homogenization of international
management education that threatens Thunderbird's
niche; minimal growth in the full-time MBA market; a
shifting MBA customer base toward working profession­als;
a need for flexible educational delivery methods."
Each of these challenges was factored into the four
strategy statements that comprise the core of the plan.
• Brand Thunderbird as the industry standard world­wide
for international management education.
"This statement articulates how important it is for all
is presented at the April 10,
2003, Board of Trustees meet­ing
in Glendale, Ariz., where it
is approved.
To aggressively consolidate and confirm of us in the Thunderbird com-munity
- Board members,
administration, faculty, staff,
alumni and students - to
assume the role of being a
brand owner," said Herberger.
"Success in branding depends
upon all of us working togeth­er,
with consistent, targeted
"In April 2002, the Board
reviewed and renewed its com­mitment
to Thunderbird's
international focus, " said
Board of Trustees Chairman
our position as the world's premier
graduate school of international man-agement
and a leading source of talent
and information for global managers.
Barbara Barrett. "The strategic THE THUNDERBIRD VISION
messages."
plan sustains and enhances the Thunderbird Experience:
That is what makes this strategic plan so important."
That the process was a collective effort is evident. "The
beauty of this plan is that there is no single author," said
President Roy A. Herberger, Jr. "We took this plan to
Hong Kong. to London, to Monterrey, to France and back
to the United States, and it reflects our stakeholder
groups - all of them."
The foundation of the plan is the Shared Beliefs (see
Shared Beliefs sidebar) . "These statements were like a
mantra that we repeated to ourselves along the way," said
Herberger. "They were our starting point. n
While the Shared Beliefs served as a starting point, the
research drove the resulting strategy statements. "This
particular plan has more data driving the strategies than
any plan I've been involved with in my 20-year career,"
Herberger said.
The data looked at competitors, enrollment projec­tions,
product mix and revenue opportunities (see
• Enhance the perceived quality, value and differenti­ation
of the full-time MBA in International Manage­ment
program in the eyes of students, employers and
other stakeholders.
According to Dean of Faculty and Programs David
Bowen, enhancing the full-time MBA program requires
an across-the-organization effort. "We want a program
that delivers valuable, unique and tough-to-copy benefits
to students and employers. Our real edge on uniqueness
is the international piece, so we're trying to emphasize
that in the course content and competencies of the facul ­ty
we hire."
For Kay Keck, vice president for Student Services and
Program Support, whose oversight includes Admissions
and the Career Management Center, this statement has
broad impact. "On the operational side, this is a shared
responsibility with my organization in concert with the
faculty because the academic curriculum and classroom
delivery are really the heart of the program. Every one of
12 THUNDERBIRD MAGAZINE FALL 2003
our areas is a brand touch point that can either reinforce
or erode the program in the mind of the students."
• Diversify programs and delivery methods with grow­ing
emphasis on the worldwide working professional
management education market.
Jerome Couturier, who recently joined Thunderbird as
senior vice president of Executive Education, sees oppor­tunity
and challenge in this strategy statement. "Together
with custom programs, the Executive MBA market is pre­dicted
to be the fastest growing market segment over the
next few years, with annual growth rates between 15 and
20 percent. (See chart at right.) Within this segment, the
custom EMBA sub-segment arguably shows even more
potential. Entrepreneurship and flexibility will be key
factors for any school wanting to ride on this wave, and
Thunderbird exhibits both."
• Focus global expansion from three strategic hubs/
regions - Glendale (Americas), Archamps (Europe,
Middle East, Africa), Asia location (to be determined).
"One could argue that the most successful partnership
Thunderbird has ever had is with the French Haute
Savoie Region, with the establishment of our Thun­derbird
Europe Campus at Archamps," said John Seybolt,
senior vice president for Institutional Advancement and
Alliances, who oversees more than a dozen alliances
between Thunderbird and other educational institutions
and organizations throughout the world. "This is certain­ly
a model partnership, and one that is instructive as we
focus our global expansion from the three hubs we have
targeted," said Seybolt.
Another successful program partnership he notes is the
Global MBA for Latin American Managers, which
includes collaboration with ITESM (Instituto Tecno­l6gico
y de Estudios Superiores de Monterrey). "This is a
partnership with arguably the finest business school in
Latin America," Seybolt said. "The success of the program
builds on the reputations of both institutions."
For him, alliances must be developed with care,
depending upon the program and the region of the world.
"Looking at business schools that have been relatively
successful or unsuccessful in global expansion, it has
exclusively been through a strategic partnership that the
successful schools have realized their successes. The fail­ures
have consistently been where schools have 'gone it
alone: The situations are too complex as well as con­stantly
changing to allow a school (or any organization
for that matter) to go it alone."
While the plan recognizes sig-
ENROll MENT TRENDS IN IJ S MBA pROGRAMS
Headcount
400,000
300,000
200,000
100,000
a
1995 2000 2005 (est) 2010 (est)
MBA Full-time
• MBA Distance
• MBA Part-time
EMBA
Source: National
Center for
Educational Statistics,
"Projections of
Education Statistics
to 2012."
The National Center for Educational Statistics projects flat
full-time MBA enrollment and growing part-time, distance
and EMBA enrollments over the next 10 years.
IJ 5 MBA MARKET PRODlJCT MIX
Percentage
100
75
50
25
a
T-bird Benchmark Target All MBAs
• MBA Full-time
• MBA Distance
• MBA Part-time
EMBA
Benchmark:
USC, Babson,
S.Cal., Georgetown
Target:
Duke, NYU,
LBS, lnsead
Thunderbird's product mix has been heavily reliant on the
full-time MBA program, while benchmark and target schools
such as USC, Babson, Southern California and Georgetown
have increased their part-time MBA offerings.
nificant challenges, it also rec­ognizes
Thunderbird's key
opportunities. Among them is
the Archamps campus, a state­of-
the-art, strategic alternative
to the Glendale campus, and
the School's success in recruit­ing
faculty and staff. Add to that
We develop high-potential individuals
to serve the advanced management
needs of international enterprises,
THUNDERBIRD'S MISSION
FALL 2003 THUNDERBIRD MAGAZINE 13
The strategic plan calls
for building upon and
growing the School's
competencies in the
working pro fessional
markets.
Thunderbird's pOSltlon as the only major graduate
school with operations on four continents working in
pannership with schools, governments and corporations.
The plan identifies other key opportunities, induding
Thunderbird's history of success with working profession­als
as evidenced by the highly ranked Executive Education
offerings; a No. 1 ranking that can be leveraged across
multiple markets; and a capital campaign that can be
focused on requirements of the plan.
That last opportuniry will help mold and drive the
School's fund-raising priorities, said Richard Tollefson
'83, vice president for Institutional Advancement and
director of Development. "The strategic plan is a key
component in defining the vision for Thunderbird's
future. To fully implement this plan will require tens of
millions of dollars over the next five to 10 years. The
Development Office is aggressively working to secure the
financial resources needed to make this plan a success."
A number of cross-organizational groups are working
on putting the plan into action. One of those groups is
focused on operational effectiveness. "Our charge is to
get in front of problems that stand in the way of the pro­gram
being satisfying to students, employers and faculry:'
said Bowen.
The plan calls for immediate actions. Among those
taking place are finalizing strategies and business plans
for Thunderbird Europe and Asia; implementing a mar­keting
plan to attract more applicants to the full -time
degree program; developing and putting in place full ­time
program qualiry initiatives; enhancing faculry
development in delivery methods and market segments;
continuing market studies to assist in the design of
blended programs; and developing an institutional mar­keting
plan.
"This is a flexible plan," Herberger said. "The result
will be a new Thunderbird. I think the key is that we're
trying to do for our current students what we've always
tried to do for them - provide the best international
management education. It's a cherished heritage and we
want to be reminded of it." •
STRATEGIC PLAN EMBODIES
THUNDERBIRD'S SHARED BELIEFS
We believe in the virtues of a global
economy and the rewards that globalization
brings by serving a global, open society.
We believe that valuing cultural diversity
fosters open, peaceful, and mutually beneficial
relations among the world's people.
We believe course content with a global
context is core to our curriculum, and that
the School should promote and support unique
content creation in everything we teach.
We believe that global diversification -
sites, programs, alumni networks, and learning
experiences globally - is important
to our unique "global context."
We believe that our students and clients join a
worldwide network where people take care of
each other in a quality way with a shared
sense of purpose.
We believe our "global context" offers a
unique value added experience to our
students and clients and is a means for
differentiating and securing our brand image
among a growing set of competitors.
THUNDERBIRD PRODUCT
REYENUE MIX· 2002
THUNDERBIRD PRODUCT
REYENUE MIX· 2008
Full-t ime Oegree
Working
Professionol
Non-degree
Working
Professional Oegree
14 THUNDERBIRD MAGAZINE FALL 2003
BY MELISSA CRYTZER FRY
Luis Villanueva '02 Trades the
Cockpit for the Board Room
5 om,tim" thin" jn" f,li into p''''
For Luis Villanueva '02, a string of events unfolded that put him in
the right place at the right time - seated in a Thunderbird Executive
MBA dassroom every other weekend - just minutes from his new
workplace in the Arizona skies surrounding Luke Air Force Base.
When Villanueva, an F-16 instructor pilot, was transferred to Luke
Air Force Base in Phoenix, he knew it was time to consider a career
change. After 12 years stationed in five countries, he had hoped to
transition out of the military and into a civilian role. "If I didn't make
a change, I saw myself in the military for 10 to 12 more years with four
or five moves all over the world," said Villanueva, who admits he has
always been drawn to things international. Born in the United States,
but raised in his mother's native Spain since age 8, the father of two
decided it was time to take the leap.
What he didn't know was that an international business school,
with Air Force roots and a founding mission based on training officers
in international business, was located only 20 minutes from his new
Villanueva, pictured assignment. The EMBA program also offered
during the EMBA trip to a flexible Friday-Saturday schedule that didn't
China is no stranger to interfere with flying and complemented the
overseas experiences. master's degree in international relations that
After military training in Villanueva had earned from Boston Uni­aeronautical
engineer­ing
at the Air Force
Academy and pilot
training in Texas, he
served as a cadet in
France, a personnel
management officer in
Germany, an F-16 pilot
in the Republic of Korea,
and a mission com­mander
in 1999 during
Operation Allied Force
in Italy.
versity's European Campus in 1996.
"( thought, this was just meant to be," said
Villanueva. But the uncanny coincidences
didn't end there. In his Thunderbird dasses,
he met Brian DeBruin '02, a dassmate with
whom he had an instant connection; DeBruin
had graduated from the Naval Academy in
1991 - the same year Villanueva graduated
from the Air Force Academy.
Today, both work for Marsh Inc., a Fortune
200 global risk management consulting firm.
"We worked on a project together throughout
the EMBA program, and in the interim, 1 got
exposed to Brian's employer, Marsh," said
Villanueva. "I knew I wanted to work with a
professional services firm with a global pres­ence."
As luck - or fate - would have it, Villa­nueva
deftly landed his first position with
Marsh and earned the corporate title, ACE, an
acronym that, coincidentally, has military
connotations. According to Webster's, an ace is
a combat pilot who has destroyed enemy
planes. Although Villanueva has lived the mil­itary
definition - flying in combat with night
vision goggles and teaching students to com­mand
laser guided bombs - his current posi­tion
stands for Associate Client Executive.
ACEs are high-potential MBAs, fast-tracked within Marsh and men­tored
by senior management. Villanueva's mentor is T-bird Greg
Martin '84. "Luis brings a unique combination of life experiences and
skills to the firm, induding the leadership experience, team focus and
global perspective that are so important in helping our dients navigate
the new realities of risk worldwide," said Martin.
Villanueva credits high-caliber professors, coursework and curricu­lum
for making the transition less difficult. "I needed exposure to peo­ple
with business experience," he said. "The ability to interact with exec­utives
with up to 10 years of professional experience in various fields
really contributed to the EMBA learning experience." Class case studies
also taught relevant lessons that Villanueva uses in his current role as
he analyzes, quantifies and solves company risks from a financial, oper­ational
and strategic perspective.
And, of course, Villanueva says that military training also prepared
him for the business world. "If you are faced with a challenge in the
military, you develop a structured plan to resolve it," he said. 'These
skills are very transferable to the business world."
Villanueva will apply these skills to another personal challenge he
faces: a yearning to soar through the skies - one that began when he
was a young boy. "I definitely plan to do some civilian flying," he
said. "This time it will be for pleasure - not part of work." •
FALL 2003 THUNDERBIRD MAGAZINE 1S
Travel Assistance
Services Save Lives
and Corporate
Dollars
March 20, 2003, is a date Tony Young
'03 won't soon forget.
His trip to Beijing, China, as one of 33
EMBA students attending a tour of the area's
businesses and cultural sights quickly turned
into a seven-day blur - ftIled with glimpses
of hospital personnel, IVs and doctor-accom­panied
private jets.
A routine, preventative colonoscopy 10 days
before departure had resulted in uncontrol­lable
internal bleeding, leaving Young and his
wife Barbara, who had accompanied him on
the trip, with a handful of additional consid­erations.
They were in a foreign country where
medical insurance was accepted,. but cash
upfront and reimbursement later were the
norms; credit cards weren't accepted for med-
MedAire's Global Response Center is the prime
point of contact for business travelers who expe­rience
medical and security emergencies. Clients
with medical emergencies have direct access to
u.s. -based board-certified emergency room
physicians who provide immediate consultation
through telemedicine technology.
Greg Eaton '93 conducts a client orientation ses­sion
at a MedAire-owned Global Doctor facility
in Chongqing, China. Global Doctor has medical
clinics in China, Thailand and Indonesia.
16 THUNDERBIRD MAGAZINE FAll 2003
ical emergencies; they didn't speak Mandarin
Chinese; and most frighteningly - the SARS
epidemic was in its infancy, making the possi­bility
of a blood transfusion questionable.
Fortunately, Young was covered through
travel assistance insurance provided to all
EMBA students as part of their tuition. After a
quick call to travel assistance provider Inter­national
SOS and insurance carrier AIG, he
found himself in a Beijing ER and later trans­ported
by a medically staffed private jet to a
hospital in Hong Kong, then finally evacuated
to the United States where he recovered fully.
Not all travelers are as fortunate - or pre­pared
- as Young, though . Nor do they
always have thousands of dollars in available
cash for medical emergencies, or the proper
travel tools.
"International terrorism, crime and SARS
have put different demands on companies,
but also on individual travelers," said Beijing­based
Greg Eaton '93, MedAire Inc. general
manager for Asia. His employer, like Inter­national
SOS, provides corporate travelers
with travel assistance services that run the
gamut - from medical evacuations similar to
Young's to overseas physician referrals and
pre-travel security advice.
"I travel frequently to Jakarta," said Eaton,
who uses assistance services himself. "Prior to
going, I access the latest security data and
speak to security specialists who can advise
me on the level of threat in a region." Recent
terrorist attacks such as 9/11 and the Bali and
Bogota bombings have, indeed, changed the
way expatriates and business travelers con­duct
business.
Travel assistance companies - which
emerged in response to widespread corporate
globalization and the inability of embassies
to meet the influx of traveler needs - deliver
peace of mind by providing a single emer­gency
phone number that can be used any­where
in the world. "As companies globalize,
larger bases of expatriates reside in foreign
cities and capitals," said Robert F. Valente,
MedAire vice president, security and global
operations. Travel assistance companies, he
explained, are meeting those needs by pro­viding
24-hour emergency hotlines, as well as
legal support for travelers who might find
themselves unjustly arrested. · Over the past
15 years, other issues have come into play -
like international terrorism - creating a need
for security setvices," Valente said. 'These
events have created a demand for information
regarding a destination's safety, which has
also led to emergency response and crisis
planning for companies."
"You put a plan in place and then you stick
to the plan," said James "Dusty" Scott '96,
assistant vice president for Academic Opera­tions
and risk management consultant. In
May 1998, he assisted in the evacuation of
Indonesian citizens and employees of multi­national
corporations when civil unrest
erupted in Jakarta.
Like Scott, risk management compan ies
and consultants often focus on crisis plan­ning
and frequently have firs t-hand experi­ence
or live within a particular regio n. Often,
they are called upon by travel assistance com­panies
to share their local expertise. Scott,
retired military with a master's degree in
national security affairs, was assigned to the
U.S. Embassy in Jakarta as a foreign area offi­cer
from 1992 to 1994.
"In Jakarta, many didn't fo llow the estab­lished
plan - which became extremely costly,"
he explained. Some employees attempted to
book themselves on several aircraft with the
intent of taking the first available flight. What
resulted was chaos - overbooked flights,
schedule changes and hastily scheduled private
chartered jets that cost companies mill ions.
Emergency evacuation and crisis plans vary
from company to company, but they consis­tently
provide preventative strategies and a
roadmap for employees to follow in the event
of a crisis. Scott explains, if an evacuation is
necessary, employees must know if they
should go directly to the local airport or a pre­determined
meeting space - or whether a
helicopter will come to them. What will they
do if they see rioting in the streets? If expatri­ates
abandon their homes, who will protect
their properties from possible looting? Such
questions are addressed with effective risk
planning. Employees also often experience
trauma after an evacuation, and the plan
'"
Dusty ''lames'' Scott
'96 assisted in the
evacuation of corpo­rate
employees from
Jakarta, Indonesia, in
May 1998, where
demonstrations
resulted in clashes
with security forces.
should include support
for emotional prob­lems.
Some consultants
will take planning a step
further to include mock
evacuation sessions that
ensu re employees are
prepared.
"As T-birds, we travel
all the time," said Scott,
~ who continues to work as a consultant out-
~ side of Thunderbird. "No matter where you
(9j go, something can happen - civil unrest, a
~ natural disaster. It's best to be prepared."
~ "MedAire's focus is on prevention and
~ preparation," said Eaton, who continues to
explore medical facility expansion in Europe
and Asia based on client needs. "We enable
the business traveler or expatriate to take per­sonal
control of his health and safety."
Corporate travelers have access to online
country reports that include health and secu­rity
alerts, emergency and travel p lanning tips,
approved medical clinic contact information
and direct access to medical and security
advice from U.S.-based physicians and securi­ty
special ists. "Better informed and prepared
travelers can minimize major incidents and
hopefully avoid evacuations," said Eaton.
"That equates to corporate savings."
So - if you've lost your passport, find
yourself in the middle of terrorist activity or
experience a medical emergency and don't
understand the local medical system or speak
the language - travel assistance companies
can provide a tremendous setvice.
But perhaps the best illustration of the
assistance company's value-add is Young's
experience. "If you do any type of travel
abroad." he said, "or if you are anywhere out
of the country, you need to have this type of
protection for the peace of mind it provides."
A small price to pay, in his opinion. •
- 1n/I<mItII!I1II -
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AXA INTERNATIONAL
33 1 55 92 40 24
www.axa-assistance.com
info@gassist.com
MEDAIRE, INC. - GLOBALIFELINE
(480) 333-3700 or (800) 890-8209
www.medaire.com
info@medaire.com
AIRCARE INTERNATIONAL, LTD. MEDEX
(360) 754-9805 (410) 453-6300
info@facts-aircare.com
www.facts-aircare.com
www.medexassist.com
info@medexassist.com
INTERNATIONAL 50S
(215) 244-1500 or (800) 523-8930
www.internationalsos.com
scholastic@internationalsos.com
FALL '2003 THUNDERBIRD MAGAZINE 17
T-bird Corporate Citizens
Get More than They Give
"Corporate
citizenship
should be just as
emphasized as
any other profit-making
piece of
the business.
If viewed in this
manner,
corporations will
be able to get
past the belief
that philanthropy
is strictly to do
good."
- FREDERICK
BOLLERER '67
Pursuing profits is no longer Fred
Bollerer's top priority. "My primary
role today is to prove that you can take
an investment approach to putting money
into nonprofits and receive a social return,"
said the former president and CEO of Riggs
National Bank in Washington, D.C.
With a 30-year banking career under his
belt, Bollerer '67 joined 3-year-old Venture
Philanthropy Partners (VPP) in 2002 as sen­ior
investment director. The company pro­vides
funding for programs that improve the
Lives of low-income children in the Washing­ton,
D.C., area; it also has developed an inno­vative
grant-giving philosophy.
This growing trend of corporations inte­grating
social values into daily business prac­tice
is something that Bollerer takes seriously.
Its official term is corporate citizenship, but,
unofficially, it's a concept that is second
nature to many T-birds. Perhaps the Thunder­bird
experience - living among people of so
many cultures and varied social experiences
- ingrains such sensitivities in alumni.
"There are so many ways of collaborating at
Thunderbird that, if taken with deep commit­ment,
it can become almost a part-time job,"
said Karen Centeno '03, citing her leadership
role with student philanthropy initiatives and
the sense of responsibility that the campus
environment naturally encourages. "It is a
highly rewarding feeling to help somebody
else." A good corporate citizen is one who
shares Centeno's thoughts, taking into
account his company's impact on all stake­holders,
including employees, customers, sup­pliers,
communities and the environment.
Bollerer fits this description - making a
positive impact not only in children's lives,
but also in the way companies consider phil­anthropic
support.
"Our idea is that nonprofits should be
viewed unconventionally - the way a private
equity investor would look at a potential
investment," said Bollerer. "One of our goals
is to influence other philanthropists and
companies to change the way they provide
money to nonprofit organizations - to do it
as though it were an investment, rather than
a donation or contribution."
According to Bollerer, corporations and
18 THUNDERBIRD MAGAZINE FALL 2003
foundations haven't historically spent much
time researching the best organizations to
fund. As well, he explained, they often don't
allocate significant amounts of money, result­ing
in funcLing below a basic-needs level and a
lose-lose for the recipient and the benefactor.
The good news is that VPP's philanthropy
model is gaining ground. "We are contacted
frequently by foundations and even national­ly
publicly traded corporations who tell us
they' re following us closely, and they're
beginning to rethink and reshape some of
their programs around our philosophy."
This philosophy of support makes perfect
sense to Will Warne '99, who, as a student,
chaired a student philanthropy initiative to
promote student financial and volunteer sup­port
for the School - now called Philan­thropy
@ Thunderbird (P@T). "This oppor­tunity
exposed me to the lack of awareness
about philanthropy and to the intangible
emotional and intellectual benefits that come
from participating with your community,"
said Warne, global account cLirector for Nike
at APL Logistics, a leading global logistics and
supply chain management company.
BY CHERYL A. SWEET
The Kearny Alliance,
founded by Merle
Hinrichs '65, supports
sustainable development
programs in Cambodia
and other parts of the
world. The foundation's
belief: If you want to
feed and educate a child,
give his/her parents a
job. Pictured above and
next page are two
female entrepreneurs.
Opposite page (left):
The creation of this
school -as well as data
entry training and result­ing
employment oppor­tunities-
are the result
of the Kearny Alliance's
commitment to sustain­able
development in
Cambodia.
"P@T is an example of how we work with
our students to teach them the concept of
global leadership," said Richard Tollefson
'83, vice president for institutional advance­ment
and director of development. "At Thun­derbird,
we teach students to be the best busi­ness
leaders and to be citizens and leaders of
the world. Out of that comes a perspective
and responsibility to be a good citizen and
community servant in whatever you define as
your community - whether it be your home­town,
the town in which you do business or
the T-bird community."
Another successful businessman and
notable steward of the global community is
Merle Hinrichs '65, CEO of Global Sources
and founder of The Keamy Alliance Founda­tion.
"The Kearny Alliance," he explained,
"has the mission to advance sustainable glob­al
prosperity with the result of creating lasting
jobs, increased efficiencies in business and
greater cross-cultural understanding."
With sustainable development initiatives
in seven countries, The Kearny Alliance is
focusing on an export development program
in Indonesia that will engage low-income
entrepreneurs to compete in the global econ­omy
through skills development, market
linkages and technology. "We are helping to
overcome the barriers to export for those
communities that would not otherwise have
the opportunity to participate in global
trade," said Hinrichs.
"Study after study suggests companies that
are good corporate citizens also do well in the
marketplace," echoed Masood Jabbar '74, for­mer
executive vice president of global sales at
Sun Microsystems. "You really don't have to
see it as a trade-off. Employees like working
for companies with good values, companies
that display social responsibility and compa­nies
that have a good image," he said. "Cus­tomers
like buying from companies that are
good corporate citizens - assuming they're
competitive. Above all, when people feel good
about working someplace, only then does the
magic start. You can never get customer satis­faction
without employee satisfaction."
A more engaged, loyal and productive work­force
is another result of good corporate citi­zenship,
noted Warne. "And don't forget the
fun factor," said Bollerer. 'Tve never worked
harder or had a more challenging position. But
I also never felt as rewarded as I do now."
Hinrichs echoed similar sentiments. "I
enjoy helping others, and it's very satisfying
to see those we have assisted become self-suf­ficient
and successful. There is little question
that we live in a global community. We are
dependent upon each other's resources,
energy, technology and security, and
we share the same environment. To
therefore sustain our global economy,
we must join forces, establish com­mon
practices and opportunities and
respect one another."
"I believe the single most important
responsibility that young global busi­ness
leaders have is to constantly
seek ways to improve the dramatic
disparity of resource distribution
both within companies and on a
global level, " said Warne.
His prediction: ") think that
corporate citizenship roles will
elevated to executive levels wi
progressive companies. It will
also become a leading factor in
product marketing and contract
negotiations." •
Above: Students contribute to the Thunderbird
community each year, donating their time and
efforts to Philanthropy at Thunderbird Week
(P@T). A student car wash, bake sale and auc­tion
(pictured) raised approximately $6,000.
NET IMPACT TO HOST
GLOBAL CITIZENSHIP
FORUM
Student clubs also actively advance the
message of corporate responsibility. Net
Impact, whose mission is to create a better
world through business, is hosting a Global
Citizenship Forum Dec. 5, along with the
Lincoln Center for Ethics in International
Management and the Career Management
Center. Students, as well as local and cor­porate
communities, are invited to attend
this day of meaningful dialogue that will
highlight the need for and benefit of social­ly
responsible business practice. Speakers
from companies such as Merck, Star­bucks
and The United Nations
Global Compact will participate as
keynote speakers and panelists,
leading the afternoon workshop.
For more information about this
and other Net Impact initia­tives,
e-mail the Thunder­bird
chapter at netim­pact@
global.thunder­bird.
edu or visit the
national Web site at
MAGAZINE 19
Student-led Think
Tank Attracts
Corporate Clients
Brightly colored Legos, Etch-A-Sketches,
bottled bubbles and Crayolas spill onto
the 6-foot tables that form an inner-fac­ing
rectangle in room 28 of the Tower Build-ing.
Previously the Music Room, this space is
now the Idea Room - and also the birthplace
of innovative product, service and strategy
concepts developed for companies such as
The Dial Corp., U-Haul, Suntel, Cybird and a
host of others.
The main gathering place of the Thunder­bird
Innovators Circle - a student club
known as THINC - is much more than the
play space it appears at first glance. Founded
in fall 2001 by Anil Rathi '02, Vikram Mang­haram
'03 and Adeleke Adegbenro '02, the
club was formed to expose students to major corporations while pro­viding
hands-on, creative, out-of-the-box problem-solving experience.
Now boasting a membership of more than 300 individuals from 52
countries, THINC conducts regular, structured brainstorming meetings
- ideation sessions - and focus group research for major corporations
and smaller, entrepreneurial companies. For a fixed fee of $2,500 a ses­sion,
companies purchase the creativity and talent of T-bird students
from various cultures and industries who solve product, service and
marketing problems ailing corporations worldwide.
"The diversity of the student body translates into a diversity of
ideas," said Srini Vasan '95, director of U-Haul's eMove division,
whose company participated in two ideation sessions. The new eMove
division was searching for ways to partner with independent moving
companies in an effort to provide a one-stop solution for customers
faced with relocating. "The session helped us understand our market­BY
MELISSA CRYTZER FRY
we sell ourselves as a global think tank of more than 300 people from
over 50 countries," said Rathi.
The ideation sessions, open to all T-bird students, use various stim­uli
- squirt guns, Jenga sets and Nerfballs - to engage participants to
think imaginatively about problems. According to Mangharam, the
ideal candidate for an ideation session isn't necessarily one who has
experience in the industry that will be discussed. "When people work
in a specific region or field, their minds tend to think in a certain way, "
he said. "You are supposed to not know anything. It inspires creativity."
"We developed an iterative BOUNCE'" process that helps us bounce
ideas into the product development cycle, " explained Rathi.
The six stages of BOUNCE™ - Briefing, Observation, Understanding,
NaITo wing, Concepting and Execution - allow clients to interact
throughout the process. Many clients attend the Observation phase
- the first ideation session - designed to promote divergent think­place
better and gave us some high-level view­ing
where wild, crazy and seemingly illogical
points and perspectives of our business model
from a diverse group of highly intelligent busi­ness
students."
"The diversity of the Thunderbird ideas are fair game. "Everything's possible,"
said Robert Lipton '03, spring 2003 president
ofTHINC. "That's how we get at the innovative
Before a session is scheduled, THINC mem­solutions.
"
bers must actively sell the concept to potential
clients. To date, they have conducted more
than 25 sessions with 15 different companies.
"Utilizing THINC-generated pitch templates,
USING ITS UNIQUE BOUNCE PROCESS,
THINC HAS PROVIDED SERVICES TO
THE FOllOWING COMPANIES:
20 THUNDERBIRD MAGAZINE FALL 2003
student body provides a natural
cross-pollination of ideas during
ideation sessions. "
- ANIL RATHI, CO-FOUNDER,
THINC & IDEA CROSSING LLC
During the third phase - Understanding -
the THINC team presents an initial report from
which the client selects the most promising
ideas for use in a second ideation session. At
EXXON.~ HEARTLAND SOUI'
• ... 08/t. :s
the Narrowing phase, products are developed in more detail and the
services and strategies are determined for implementation.
And finally, at the Execution phase, clients receive a final report with
an implementation strategy, as well as a resume book of all partici­pants
involved in the process.
Erik Sebusch '01 was instrumental in helping the group structure its
ideation sessions. In fall 2001, he organized an ideation session with
members of the UPS New Product Concepts Group, whose brain­storming
techniques influenced THINe's emphasis on the front-end
of the product development cycle.
Since then, THINC leaders have spent hours poring over innovation
literature and speaking with experts in the industry as they plan creative
sessions. 'We spent 10 hours alone planning the U-Haul session,' said
Lipton. Student groups used actual tool boxes, filled with tools, to cre­ate
sales tool metaphors such as hammering home the point and measur­ing
the difference. The end result was a series of inventive ideas about
how to sell the eMove service to HR departments of large companies.
THINe's planning paid off with The Dial Corp. as well. The group's
challenge was to improve upon the personal cleansing body wash
experience, concentrating on the storing, dispensing and applying of
THINC members put their body wash in the shower. During two
innovative minds to work ideation sessions, THINC delivered more
while promoting a session than 15 marketable concepts in only 17
with U-Haul. Parked in the business days, some of which are being
middle of campus near developed by Dial.
the Thunderbird Pavilion
and posted with THINC
meeting notices, the truck
helped students visualize
the moving experience
and clarified to foreign
students what U-Haul is.
NEED HELP THINC-ING through com­pany
problems? Contact Adam Hunter,
THINC president, at AdamHunter @glo­bal.
thunderbird.edu, or Jeff Mathers, vice
president, at jmathers@global.thunder­bird.
edu, to schedule a creative session. _
FROM THINC ... TO IDEA CROSSING ... TO THE
WORLD'S MOST INNOVATIVE MBA TEAM
THINe's success has led to the formation of a commercial
enterprise, Idea Crossing LLC, the business development arm
of the student-led group that aims to build a global, online net­work
of professional innovators. Founded by THINC members
Anil Rathi '02 and Robert Lipton '03, Idea Crossing will help
global corporations generate new product ideas, conduct flash
focus groups and feed the innovation pipeline of companies
worldwide.
The company's current focus is working with THINC to organ­ize
the first-ever Innovation Challenge to crown the World's Most
Innovative MBA Team Nov. 20-22 at Thunderbird. MBA candi­dates
from the top 50 graduate business programs will generate
new product plans for sponsoring corporations as they compete
for a $20,000 grand prize.
Bronze through platinum sponsorships will give companies
the opportunity to acquire
from one to 30 new prod­uct
plans from top MBA
teams during the competi­tion.
To date, $35,000 has
been raised from in-kind
donations and sponsor­ships,
including silver spon­sorships
from The Dial
Corp. and Pinnacle West
Energy Corp.
A $15,000 donation
from Ignify Solutions based
in Pune, India, and Los
Angeles, Calif., is funding
an automated web site that
provides registration tools
and allows participants to
complete a portion of the
competition online.
'We hope that the
Innovation Challenge accel­erates
the message that
More than a dozen students partici­pated
in an ideation session in June
that focused on developing a name,
phrase and preferred flavor for a
Thunderbird chocolate bar. Groups
were first blindfolded for a choco­late
taste test during which they
described the taste and textures
they experienced. After developing
names from the previous group's
adjectives, they rotated a final time
and developed various taglines and
additional names, including M.B.A.R
(MBA bar) and Blending Business
innovation is a key driver with Pleasure. Pictured is Vikram
for sustaining long-term Mangharam '03.
growth for corporations, '
said Rathi. "Thunderbird fosters an atmosphere that breeds inno­vative
people.'
INTERESTED IN LEARNING MORE about Idea Crossing or
participating in the Innovation Challenge? Contact Rathi at
rathi@ideacrossing.com or visit www.ideacrossing.com.
For information about the Innovation Challenge,
www.innovationchallenge.net or send an e-mail to
info@innovationchallenge.net.
FALL 2003 THUNDERBIRD MAGAZINE 21
When Dan Bartal '03 graduated in
August, he didn't put on a suit and
tie. Instead, he joined classmate
Zak Wood '03 in the kitchen of their new fast­food
restaurant in San Francisco - with
healthy, fresh ingredients in one hand and a
prize-winning business plan in the other.
Healthy fast food? That's the inspiration
behind the duo's idea, Fresh Press, a concept
they presented at the Thunderbird Entre­preneurship
Club's first-ever business plan
competition April 18.
Their panini-style sandwiches, mini-focac­cia
bread breakfast items and Argentine spiced
chimichurri dinner specials - along with a
well-researched business plan - won them
the $5,000 grand prize. With it, they have nar­rowed
their focus, adjusted menu items and
considered a name change - Maia's.
Bartal and Wood were among 12 finalists
who presented business plans, and more
than 85 students overall who initially sub­mitted
31 executive summaries to professor
and venture capitalist pairs who evaluated
each plan. Ten-minute student presentations
22 THUNDERBIRD MAGAZINE FALL 2003
allowed a panel of judges - including local
and international business professionals
and alumni Michael Zuieback '91 of
Discount Tire Company and Rich Baron '89
of the Northern Arizona Technology and
Business Incubator - to whittle down three
winning teams among six that competed for
$5,000, $2,000 and $1,000 prizes.
The second-place winner, Algae of the South
7Tading Company, focused on the manufacture
of Peruvian algae for consumer products. The
third-place award was presented to David
"Our menu is an international
fusion - based on our experience
here at Thunderbird. It's how we
live. You learn snippets of 55
different languages and the food
that comes with them."
-DAN BARTAL,
FRESH PRESS BUSIN ESS PLAN WINNER
Ptak '03 and Sandi Kochhar '03, for Solid
Professor, a training program for CAD software.
The goal of the competition, according to
Thunderbird Entrepreneurship Club presi­dent
Kristof Dossche '03, is to help students
refine their business plans, present them to
potential investors and raise further capital.
"We want to help students get their plans off
the ground, H he said.
"The Fresh Press win definitely gave us the
motivation to make the plan a reality, H said
Barta!, adding that the team's first step was to
incorporate their business venture. Wood,
who has been in California since graduating
in May, is viewing commercial properties and
meeting with kitchen designers; the pair
hopes to meet with investors in September
and open in spring 2004.
Funding for the competition was provided
by the Thunderbird Student Government, as
well as various campus departments. A por­tion
of the $8,000 prize came from Chris
Fussner '82, an entrepreneur himself. "I sup­ported
this event to help instill entrepreneur­ial
spirit in T-birds," said Fussner, the
Pictured at left are
B-plan participants
and TEC members:
Bottom row (le ft to
right): Mo Mohamed
'04, Kristof Dossche
'03, Mia Dand '04,
George Nemeth '03,
Ladd Watts '04.
Top row (left to right):
Steven Lukens '04,
Tim Kelley '03, Akhil
Kishore '03, Dan Bartal
'03, Thomas Whitaker
'04, Bob Panknin '04.
Top: Business Plan
Competition winners
and judges celebrate
after the results are
announced. Pictured
(standing, left to right)
are second-place
winners for Algae of
the South Trading
Company, Andreas
Makarewicz '03 and
Carlos Lazarte '03;
judge Carlo Rathe of
Comptoir Gourmand;
TEC president Kristof
Dossche '03; firs t-place
winners Zak Wood '03
and Dan Bartal '03;
and TEC adviser and
clinical professor for
Thunderbird's Global
Entrepreneurship
Center, Steven Stralser,
Ph.D. Kneeling is TEC
co-founder George
Nemeth '03. Bottom:
Zak Wood '03 (left)
and Dan Bartal '03
(podium) present their
"Fresh Press" business
plan.
founder ofTranstec, a Singapo re-based com­pany
with offices th roughout Asia that dis­tributes
electronics manu facturing mach ines.
Fussner also owns Certain Cellars, a depart­ment
of fi ne wi nes.
Motivated by the success of the first com­peti
tion - with more than 150 spectators in
attendan ce - organizers raised the stakes for
the upcoming fall competitio n, which will
culminate on Dec. 5 at Thunderbird.
The second global business plan competi­tion
will offer more than $30,000 in cash
p rizes and will include participants from top
business schools around the world. "The
increased scope and participation will require
the Thunderbird Entrepreneurship Club to
raise additional sponsorship do llars for the
event," said Thomas Whitaker '04, marketing
chair for the event. "But spo nsors will receive
a great deal of exposure and have the oppo r­tunity
to participate as judges, speak at the
club's entrepreneurship workshop and access
the School's resume d atabase."
Hundred s of spectato rs are expected to
attend the event, which will award a $25,000
BY MELISSA CRYTZER FRY
first-place prize, a $5,000 second-place prize
and a $2,000 thi rd -place award . The Entre­preneurship
Club hopes to attract at least 40
teams and accept between 50 and 100 busi­ness
plans from students at globally recog­nized
internatio nal business schools.
"To come to business school and just go to
class, go home and study is ridiculo us," said
George Nemeth '03, club co-founder and
vice president. "The rea l benefit is getting
involved in clubs, o rganizing events like this,
and completing projects that will prepare you
for work in the real world ."
Whitaker couldn't agree more. "I find it dif­ficult
to focus on my classes," he said. "It's
really fascinating to organ ize this event and to
realize that people are donating real money
to our project. As someone who's writte n a
business plan, ) know how much learn ing can
take place - and ) know that a $25,000
award is a good mo tivato r for students."
"What we also want to do is improve the
whole atmosphere of what makes Thunder­bird
a great B-schoo!," said Nemeth . ") think
we're achieving that goal. " •
A CHANCE TO
GET INVOLVED,
ENTREPRENEURIAL
ALUMNI
The Thunderbird
Entrepreneurship Club
is looking for alumni to
judge student business
plans in early November
for the upcoming
Global Business Plan
Competition and to
identify Thunderbird's
Top 100 Entrepreneurs.
Contact us today with
your name, company
name and the founding
year of your entrepre­neurial
venture. For
more information, or
to learn about business
plan competition spon­sorship
opportunities,
contact Whitaker at
ThomasWhitaker@
global.thunderbird.edu.
For more information
about Fresh Press
(Maia's), contact Wood
at ZakWood
@global.thunder­bird.
edu.
FALL 2003 THUNDERBIRD MAGAZINE 23
BY TERRIE J. LOCICERO
Alumna Ensures that Citigroup­Thunderbird
Partnership Remains Strong
Thunderbird South Florida
Alumni chapter, has helped
to maintain that relation­lie
ship, said Richard TolJef- itigroup is the leading financial insti­tution
in the world, so we have a lot
of responsibility," said Frances
Sevilla-Sacasa '78.
As the Latin America and Europe region
head of The Citigroup Private Bank, and head
of the private bank's global wealth structuring
business, Sevilla-Sacasa understands first­hand
the leadership role that corporations
must play.
"Corporate leadership is about helping to
improve the communities that we do busi­ness
in and that we serve - not only provid­ing
financial services," she said, Mbut helping
philanthropically and with cultural, social
and other initiatives. Citigroup does that real­ly
well."
One community that Citigroup has main­tained
a commitment to is Thunderbird. In
fact, the Citigroup-Thunderbird partnership
has been one of the longest-standing institu­tional
relationships in the School's history.
Beginning with the influence of David Rob­erts
'73, chairman of the Thunderbird Global
Council, the financial giant has given more
than $780,000 over the last 20 years, support­ing
orientation programs, scholarships and
student dubs. Most recently, Citigroup award­ed
a leadership development grant to support
curriculum, program and faculty development
in global leadership over a 3-year period. The
partnership also has resulted in career oppor­tunities
for Thunderbird students; more than
150 T-birds are employed by Citigroup.
Sevilla-Sacasa, a member of the Thunder­bird
Global Council and a co-founder of the
24 THUNDERBIRD MAGAZINE FALL 2003
son '83, vice president for Institutional
Advancement and director of Development.
"Frances has been highly visible in both
organizations, and she's been consistently
involved as an alumna, hosting events on
behalf of the School and contributing per­sonally."
As part of Homecoming weekend in
November, Sevilla-Sacasa will be awarded the
Thunderbird Distinguished Alumni Award in
Banking and Finance.
A lifelong resident of Miami, Fla., Sevilla­Sacasa
earned her B.A. degree from the Uni­versity
of Miami, where she had begun con­sidering
a career in international business.
Intrigued by Thunderbird's reputation, she
spoke with prominent graduates. "I didn't
even visit the campus," she said. "I decided to
attend based upon the School's reputation,
my research and conversations with those
alumni."
Fluent in Spanish and French, and studying
German when she applied to Thunderbird,
Sevilla-Sacasa had already met the School's
language requirement. But the forward-think­ing
student-to-be chose to study Portuguese
because she envisioned a career in Latin
America. Her first major assignment was man­aging
a Brazilian loan portfolio for Southeast
Bank. "I never would have gotten that job
without speaking Portuguese, " she said.
She joined Banker's Trust Private Bank in
1983 and later held positions as managing
director of Deutsche Bank's Latin America
Private Banking unit and as president of Bank­ers
Trust International Private Banking Corp.
Also a past senior vice president of Lehman
Brothers Holdings Inc., she holds Series 7, 24,
63 and 65 securities licenses.
Throughout her 25-year career, Sevilla­Sacasa
has remained involved in alumni
causes - sponsoring events and recruiting
alumni and her own employees for phil­anthropic
events. "Thunderbird gave me
the tools to get my foot in the door and
helped me to develop my career," she said.
Sevilla-Sacasa attributes her sense of
responsibility in part to her mother, who was
active in local charities. "I was always helping
my mother with her causes, so I've always
thought that everyone has a responsibility to
give back," she said. "Corporations have an
obligation to do so, too." •
Frances Sevilla-Sacasa '78
002-2003
REPORT TO
HUNDERBIRD
s:a~il INVESTORS
EMBRACE THE TRADITION. BUILD THE MOMENTUM. ENVISION THE FUTURE.
Flag ceremonies. Cultural Nights.
Global Sounds presentations.
Pilot reunions. Das Tor.
~d"'bi'd h" .1_" fo<"'oo on ""dition. But th, S,hool .1'0 h" pmitionoo I ~:elf as a fOlWard-thinking leader in global management education, keeping pace
with - and often leading the way for - innovative MBA programs and initiatives.
THUNDERBIRD REPORT TO INVESTORS FAll 2003
During fiscal year 2002-2003, the School experienced additional pace-setting
changes - a new classroom and conference facility at Thunderbird Europe, the addi­tion
of the new Lincoln Center for Ethics in International Management, and the cre­ation
of five key faculty positions in the areas of international management, interna­tional
marketing, international supply chain management and ethics.
With those changes also came affirmation of the School's long-held traditions. The
Thunderbird Europe expansion parallels the School's exclusive focus on internation­al
management education, and The Lincoln Center for Ethics reflects Thunderbird's
founding hope to provide students with " .. . a more intelligent and sympathetic atti­tude
toward the peoples and civilizations of [other] countries," as written in the
1948 catalog. The addition of key faculty also supports the School's long-held belief
that such instructors attract high-caliber students - strengthening the School's rep-utation
each year.
A myriad of technological changes occurred this fiscal year, including upgrades to
the My Thunderbird online community, as well as the addition of three online cer-
r
MoMENTUM. ENVISioN THE FUTURE.
tificate programs in Executive Education and six new faculty research databases in the
Merle A. Hinrichs International Business Information Centre (IBIC). Another '02-'03
haJimark was the creation of almost 50 international business case studies written by
Thunderbird faculty and used as teaching tools around the globe.
TABLE OF CONTENTS
Thunderbird Annual Fund
Planned and Major Gifts
4
One of the School's top priorities during 2002-2003 was continued scholarship 8
support. With generous gifts from alumni, friends, corporations and foundations,
Thunderbird was able to provide 585 scholarships worth almost $5.4 million - a
20.6 percent increase from the previous fiscal year.
Corporate and Foundation Relations 10
In the midst of such momentum, it is easy for Thunderbird to envision a bright
future - one filled with continued opportunity and growth - as well as expected
changes and challenges.
From the students, faculty and staff at Thunderbird - thank you for your contin­ued
support, which has made such success possible. As you embrace Thunderbird's
traditions and envision the
Alumni Giving by Class
Other Contributors
Volunteer Leadership
future, we hope that you will In the midst of such momentum,
find excitement in the momen-tum
that has been gaining
ground at Thunderbird.
it is easy for Thunderbird to envision
a bright future - one filled with continued
opportunity and growth - as well as
expected changes and challenges.
12
24
26
FALL 2003 THUNDERBIRD REPORT TO INVESTORS
4
Leadership Giving by Level • THUNDERBIRD
IS GRATEFUL TO THE FOLLOWING DONORS AND
VOLUNTEERS WHO SUPPORTED THE SCHOOL
DURING THE ACADEMIC/FISCAL YEAR BETWEEN
JULY 1, 2002 AND JUNE, 30, 2003.
FOUNDER
(Gifts of $100,000 and above)
Po Chung and the Creative Foundation
Harry Allyn Cockrell 73 and Creative
Quest SDN BHD
Samuel S. '88 and Rita Garvin
William D. Hacker, Estate of
Margaret L leigh, Estate of
Joan and David C. Lincoln
Guillermo Lubic Craig and Virginia
Prieto de Lubic
Cynthia Ploss Robinson, Estate of
CHAIRMAN
(Gifts of $50,000 to $99,999)
Theodore J. 71 and Joan Fuller
Farnham J. Johnson, Estate of
Gary J. Matus 72
Mary Teagarden
Bruce Grecory 'BO and Isabel
Stainow '81 Wilcox
AMBASSADOR
(Gifts of $25,000 to $49,999)
Craig R. and Barbara Barrett
Merle A. '65 and Miriam Hinrichs
J. Kenneth '57 and Jeannette Seward
and the Seward Family Foundation
Nicole A. Seward '96 and the Seward
Family Foundation
Boldface: Indicates a donor who has
made consecutive contributions in
2001-2002 and 2002-2003
M: Provides corporate matching gifts
THUNDERBIRD REPORT TO INVESTORS
BENEFACTOR
(Gifts of $10,000 to $24,999)
John E. and Jean Berndt
Donald V. Budincer and The Rodel
Foundation
James G. Coatsworth II '47
Tore and Turid Diskerud
Robert e. Ellis, Estate of
M Kenneth Ferris
Aldo Fouati, Ph.D
Charles A. Fribourg '80 and the
Fribourg Family Foundation
George Nels Fucelsang '63
Christopher John Fussner '82
M Thomas David '65 and Ellen Granger
M Thomas Dudley Hobson III 79
Richard J. and Sally Lehmann
Darin P. Narayana
G. Kelly O'Dea '72
M Paul F. Oreffice
LRoyPapp
M J. Phillip Samper '61
Richard and Alice W. Snell
Daryl G. and Louis A. III Weil and the
Daryl G. and Louis A. Weilill Fund
PARTNER
(Gifts of $5,000 to $9,999)
M David Bowen
Erik Gunnar Braathen '81
W.L Lyons, Jr. '60 and Alice C. Brown
and the W.L Lyons Brown, Jr.
Charitable Fund
Gary A. Brukardt '72
M Peter D. '60 and Mary Burgess
Salman Saeed Chaudhry '88
Robert Max Frehse, Jr. 'SO
M Cyrus F. Freidheim, Jr.
Michael R. '97 and Sandra L
Hecomovich
M Roy A. Herberger, Jr.
Richard A. Holt '71
Gerald H. and Gail Oppenheimer and
the Oppenheimer Foundation
Martin Eric '74 and Maribeth S. '74
Rahe
David H. 73 and Sarah Roberts and
the Roberts Family Charitable Fund
Michael William Short '76
M Caren Siehl
M Wendell Spence III '74
Christopher Francis Swanson '84
Samir I. Toubassy
M William and Mavis Voris
Amy E. Vorndran '95
Scott Barr Walker '81
H. Gene '60 and Shirley A. Wick
Heather L '94 and Eric Wise
Diane O. Wittenberg
Robert l. Zorich '74
FALL 2003
INVESTOR
(Gifts of $2,500 to $4,999)
M John Gareth Andrews '86
Richard D. '95 and Grainne G. Bliss
Edward e. Boyle '49
Robert Breau ' 62
Elizabeth Ann Burlincame '00
Carole EI-Dahdah '84 and Jean luc '83
Butel
Phillip R. Cabrera '78
M Hugh K. and Connie Coble
M Dale Lee Davison
Robert A. Dilworth '60
Jack E. '60 and Renee Donnelly
M John S. Donnelly '70
M James A. Emslie '77
David Feld '79
John P. '89 and Karla Florance
Robert M. '79 and Melanie A. '80
Franko and the Franko Family
Foundation
M Douglas R. Gerber '79
Thomas F. Greer, Jr. '73
M Geraldine Gurley Lamonica '70
Thomas O. Harbison
James Robinson Hedges IV '91 and the
Hedges Family Charitable Foundation
Ann Iverson
Thomas Eugene Jones '64
M Kay L Keck
Raymond Earl Kincsfield '97 and
Christina Locher
Steven L Klemme '85
John H. Latham '71
M John P. and Cindy Millikin
Lisa Moore Brayer '83
F. Francis Najafi '77
Steven L '69 and Lucinda Novkov
Toshiaki Ogasawara and the
Ogasawara Foundation
M Timothy and Kathie Propp
John C. Qua '77 and Suzanne P.
Schutte '77
Richard E. Ragsdale '67 and the
Ragsdale Family Foundation
M Bernard G. Rethore
Pablo Schneider
D. DauClas Segars '84
Donald R. Sellers '72
Douglas H. Short III '75
Fred M. Smoot '66
Allan H. Stefl
M Steven Stralser
M John David Trueblood '90
M William C. and Cynthia Turner
Dieco Julio Veitia '66 and the Dieco
Veitia Foundation
Joseph P. Viviano
Bary Scripps Wilkinson '92 and the
Wilkinson Foundation
Robert E. Withers III '68 and the
Pastoral Care Fund
LEADERSHIP CIRCLE
(Gifts of $1,000 to $2,499)
Leavitt B. Ahrens, Jr. '66
Ali Ibrahim AI-Hedaithy 78
Robert Ernest Anderson ' 47
H. Ray Atkison, Jr. '58
M Carl Lee Bach, Jr. '74
M Ali Mohammed Bahaj '79
Marian L Banning
Ben Samuel Barnes '78
Thilo David Best '84
M Norman Harris Blanchard, Jr. '59
M David William Boggess '02
Pierre Thorsten Boldt '99
M Randall L Bollig '91
M Diane Elaine Borden '92
John J. Bouma
Stephen R. Bova
M George lewis Bradbury IV '99
Paul laVern Brassard '85
James K. Bruton, Jr. 76
M David D. Carpita '67
Chenta Chen '82
Daniel Junxia Chen '86
M Curtis w.e. Ching '97
Tsai Migi Wen Chuang '94
Judith K. Cole '79
John e. Cook 79
Frank J. 'SO and Deborah S.
Corbishley
William M. '71 and Cheryl Coulter
Brian Anthony Crockett '82
Bret e. Dandoy '89
Gonzalo A. De la Melena '99 '00
Michelle Marie Denny '97
Mia Diekemper Maddoux '78
Richard Koebel Dukes '84
M John Edward Durbin 78
M Mark A. Emkes '76
J. Melville EnCle
Knut Eriksen '81
Cornel is J.J. '90 and Keiko Sugimoto '91
Everaert
Peter J. Fischler '83
David G. Fisher '67
Marc David Galligan '81
M Myra Garcia
M Jonathan R. Giddincs '66
Mary Elizabeth Giese '65
John C. '69 and Michele A. Betette
'69 Gillett
Marquis Henry Gilmore '63
David B. Goldman '64
Daniel J. Goldsmith '65
M Paul G. Gomez '78
John F. and Siglinde R. Goodson and
the John F. Goodson Family Trust
George E. Grady '57
Gary leonard Greenberg '85
M Andrea L Grecory Schoen 74
Jacobus Groot '73
Michael H. Gross '66
Paulo A. Guilhon '78
Alejandro A. Gutierrez '83
Hiroshi Hamada '91
M Tracy K. Hastings '48
J. Robert '99 and Banu Hayes
John J. Healy '92
Craig S. Heinxe '81
Patricia A. Herbig '85
Paul L Hertenstein
Aleana L. Hiles '78
George L. Hiller '72
John M. Holliman III '77
George W. Howard III '71
M David A., Jr. and Joan Howell
R. Bruce Hughes '49 and the Charles
Delmar Foundation
Mikako Inamasu '91
Julie Anne Jacobus Eiselt '84
Eric William Jillard '96 and Meaghan
Lynly Black '95
M Catherine Johnson '96
Christopher Paul Johnson '86
Walter John Joyce '99
M Karen Elaine Keese '86
Deborah Marie Kielty '81
M Laurel H. and Bruce A. Kimball
Marie Gerianne Kissel '85
Kim Marie Koeller '86
M James G. Kohl, Jr. 71
M Bart Kohnhorst '83
Masanori Kojima '93
Nobuyuki Kondo '83 and Yvette B.
Morrill '83
Luke Edward Koons '95
M Dale G. Kramer 77
M William C. Kristy 72
Michael C. Kwee '70
Robert J. Lambrix '63
M Robert E. Laport '58
David R. '68 and Rosalie Lawrence
Kris '91 and Anne D. Dellos '91
LeBoutillier
Susan D. Libera Knust 77
George R. Undahl, Jr. '54
M Kathryn Dawn Undquist '84
Susan Hurd Loo Pattee '88
M Joy Crews Lubeck '86
M Theresa G. Luis '82
Richard K. Mallery
Thomas Gerard Malone '80
REVENUE 2002-2003
its inception in 1947,
Thunderbird Campus has _d.' ~ "'" from just 14 buildings
two swimming pools to
than 35 buildings.
M Mary Lynn Manning '86
M Bruce A. Martin '90
M Barry J. Mason '58
Jimmy '87 and Lori A. Anderson '87
Masrin
Kenneth N. 75 and Mary P. Besser 75
May
James A. and Jean McClung
Aaron Michael McKee '98
M Donald J. Mclane '74
james Marvin McNamara '77
Timothy H. Meyer '70 and the T&J
Meyer Family Fund
M Therese Mary Miller Khoury '80
Hideaki Mbuno '84
David Carter Moll '83
David B. Morehouse '70
Mark Christopher Mullen '92
Martin A. Murbach
William Michael Murray '84
Victoria Neilson '82
M Anne-Marie Nelson '95
M Nona Patrice Niner '81
Michael Nissman 70
M john joseph O'Connell
Eliubeth Ann Palermo '82
Marshall Waite Parke '77
William H. Parker '65
Sarah Parker '92
Meredith Peabody '96
john K. Pidcock '51
M John C. '69 and Mary K. Polhemus
M Bruce B. Proctor '75
M Mark Paul Ramondt '93
M William J. Richoux 77
Michael F. Richter '88
M Carroll M. Rickard '56
M Barbara V. Rivera 77
M Clyde K. Rodkey, Jr. '48
Shannon E. Runyon '93
John Randall Rush 71
Jean-Claude Saada
M Mike A. Santellanes, Sr. '60
Robert J. Saum '91
Susan Carla Scheller Arsht '87
Carol Ann Schuster '83
M Cindy Schwab '89 and Marc Salem
James C. Schwam 70
Alexander I. Schwam '80
Gerard C. Scott '57
M John W. and Patricia Seybolt
Sara K. Sheldon '85
Marcia A. Shelton '76
Edrie M. Shenuski '88
Alex Charles Smith '82
Harry F. Smith '53
David J. '93 and Heidi Ann Smith '92
Gordon A. Smith '96
William Floyd Snyder '99
Robert J. Solomon '64
Frederick Bond Stambaugh 79
M Richard W. Stephan 75
M Cassandra D. Stiles 76
Ziad M. Sultan '92
M Anant Sundaram
Jack D. Taylor 71
M Richard Lee Tollefson, Jr. '83
John E. Tuberty '60
M Jutta M. Ulrich '98
Jorge H. and L. Teresa Valdivieso
Theodorus C.M. Van der Loa '79
Puneet Vatsayan '96
Christiane D. Wade '97
Gregory C. Wallace '80
Christopher R.J. Watson '96
M Bethel Lorin Weiss '93
G. Lloyd and Colleen West
Barlow M. II 76 and Nancy C.
Vandenburg 76 Westcott
Robin Wheeler Azqueta '94 and the
Charlotte and Edward Wheeler
Foundation
Herman Allen White, Jr. '86
Kimberly Harper Wiehl '80
David Lowry Winter '02
Roger l. Wittlin '78
Barton Kyle Yount III '71
M Richard L Zbylut
Daniel Leon Zigal '73
Alexander de Faria e Castro '90
Michele M. '88 and Rene Armin von
Rautenkranx '88
EXPENSES 2002-2003
ASSOCIATE LEVEL
(Gifts of $500 to $999 from graduates of
the past S years)
Richard 8yron Attridge, Jr. '98
M Callan Robert Doak '98
Christopher John Gowlland '00
M Karin Sue Hazelkorn '01
Stacey Wolff Howard '98
Sao Taek Hur '01
Alejandro Jaime Marti Bolanos Cacho
'00
M Angela Sarah Quinn '98 and Michael
Austi n '97 Roberts
Ruston Alexander Spurlock '99
Genichi Tamatsuka '98
Tuition and Fees 53% ,------------ Instructional and Educational 41%
Executive Education 27% Executive Education 23%
Student Services 5%
Auxiliary Enterprises 7%
Other 1%
Auxiliary Enterprises 5%
General and Administrative 24%
Cantribution and Investments 14%
FALL 2003 THUNDERBIRD REPORT TO INVESTORS
6
Consistent Donors • WE ARE GRATEFUL TO THE FOLLOWING INDIVID­UALS
WHO HAVE CONSISTENTLY PROVIDED GIFTS TO THUNDERBIRD OVER
THE PAST 10 YEARS. SMALLER, CONSISTENT DONATIONS MAKE A GREAT
IMPACT ON THE SCHOOL. NOT ONLY DO THEY INCREASE THUNDERBIRD'S
ALUMNI PARTICIPATION RATE, WHICH POSITIVELY AFFECTS RANKINGS, BUT
THEY ALSO CAN RESULT IN AN IMPRESSIVE CUMULATIVE TOTAL.
Abbott Laboratories Fund
American International Group, Inc.
AT&T Foundation
Frederick William Adams '81
Nancy Carol Adams '81
Raymond H. Aka 7 5
Hal R. Allen 73
Hilary Whitaker Allen, Jr. '92
David James Alltop '92
Curtis L. Anderson '85
Paul F. Anderson '55
William W. Anderson '69
Mark D. Appelbaum '91
Julie Alice Arnold Fitzgerald '85
Alton L. Ashley '50
Edward C. Auble 7 2
S. Robert August '75
Bank of America Foundation
Bank of New York
Robert G. Babson '80
Carl Lee Bach, Jr. '74
Ali Mohammed Bahaj '79
Kimberly Sue Barkdoll Mandel '82
William H. Barkell '72
Patricia W. Barnes Ricks '76
Barbara Barrett
B. Wayne Battenfield '68
Christopher T. Batterman '89
Kristine Baumgart Grutzner '87
Gordon Chris Bell '89
Barbara Bell Fletcher '79
William D. Bennett '77
Tracy R. Berglund Curran '82
Julia A. Beringer '89
Valdis Berzins '77
Gail P. Beske '78
Thilo David Best '84
Robert M. Betette, Jr. '71
Melvin T. Bethke '61
George S. Bjerklie '50
George B. Blake '59
J. Bridget Blake Rodgers '89
D. Bruce Blankenship '72
Bruce R. Bleeker '64
Walter C. Boice '64
Frances L. Bonham '81
Randolph W. Boyer '79
Patrice Boyer '74
Mary Faith Boyle Johnson '59
John F. Brady 74
Ann Lawrence Breese '83
Richard J. Breit '73
Heidi Lynn Brelsford Barnes '86
Patricia L.H. Brem '77
Thomas J. Brennan '79
Rebecca Ann Brewer '74
Paul D. Briamonte '80
Philip R. Brisack '68
Stephen Ward Brock '86
David L. Brothers '78
Rosamond Sample Brown '84
William G. Brown 70
W.L Lyons Brown, Jr. '60
Bradley P. Bruggeman '70
James K. Bruton, Jr. '76
Mark S. Bubar '77
Thomas A. Bullis '78
Richard R. Bupp '50
John F. Burlingame
Michael E. Burrichter '87
Gregory Paul Buschmann '84
Consular Corps of Arizona
Joan Louise Caldwell '81
Philip F. Calkins '65
Joseph M. Callahan '80
Kenneth D. Campbell, Jr. '74
Robert W. Caragher '86
Jacqueline T. Carriker '90
Dennis A. Cattell '75
Julie A. Chaffin '85
Robert W. Chamberlin '64
Deborah Ann Chanen '91
David Drennon Chapman '80
Christopher Lee Chatten '86
Lynne Child Franceschi '89
Gary E. Christensen ' 63
James W. Clarke '50
Carol Ann Cline Aferiat '85
Garth D. Clizbe '69
James G. Coatsworth II '47
Gary C. Cochran '78
Dennis V. Coleman '91
William W. Cone '79
Carl M. Conney '72
Michelle Teresa Connors Jones '87
Michael M. Considine '69
Roger L.P. Coombs '57
William). Cooney 111 '79
Catherine W. Cooper '75
L. Steve Cornell '52
Michael Dennis Crotty '74
Adrienne Aphrodite Crowley '85
Richard Leroy Cummings '59
Robert B. Cummins '75
Caroline B. Curtis 7 9
Anthony Richard D'Antonio '78
Alfred DeGemmis '78
Ann Marie DelaHunt Burniston '91
Douglas Paul Deardorf '84
Gerald F. Dennig '86
Nicholas William Deppen '87
Paul Steven Derksen '92
Mia Diekemper Maddoux '78
Ellen Marie Dieringer '81
Constance C. Dillon '78
Michael T. Dillon 78
Robert A. Dilworth '60
linda Anne Dolgow Krull '82
Myron J. Domareck '74
Jack E. Donnelly '60
lisa M. Doty Osmon '85
Stephen Joseph Doyle '82
Kenton E. Draigh '59
William C. Drypolcher '71
Christopher John Duenow Esq. '88
Bruce J. Eberly '74
Murray F. Ehlers '57
Olga Eldek Turcotte '81
Maggie Jill Emerson '92
Mark A. Emkes '76
James A. Emslie '77
Robert Charles English '76
G. Scott Erickson '83
William E. Esch '74
Michael V. Evangelisti '82
William A. Evanow '92
Thomas Miles Evans '93
Brian T. Farmer '79
Lynn Elizabeth Fenton '86
Vadim Fischer '79
William S. Fishback '58
Paul S. Fitch '86
Vincent J. Fitzgerald, Jr. '85
Gary Forbes '85
Jean Fortriede Burns '53
Patricia Anne Foster '78
Barton A. Francour '72
Robert M. Franko '79
Lynn Freidheim '92
Christopher C. Gaebe '75
Jonathan R. Giddings '66
Roland William Gillis '74
Ellen Harrison Gilmore '90
Peggy Ann Gitt '80
Christopher Joseph Glasow '83
Malcolm F. Gleason '50
Gregory G. Goff '83
Walter R. Gonzales, Jr. '80
Alan P. Goode '75
Gary Jones Goodman '71
Sara Tancer Gordon '89
George E. Grady '57
Linda A. Grandstaff '76
Kenneth Michael Green '87
Richard Alexander Green '81
Jennifer Gregory '82
Andrea L. Gregory Schoen '74
D. Michael Griffin '66
Mark Forest Grimes '82
Joseph J. Gross, Jr. '77
Michael H. Gross '66
Jill Heaton Gross '81
Margaret Helen Gumerlock Thomas '81
Geraldine Gurley Lamonica 70
Household International Inc.
Steven Dallavo Hall '86
William Renwick Halloran III '83
Barbara B. Hames '84
Herbert L. Harris '72
Barton L. Hartzell '59
Tracy K. Hastings '48
John C. Hay '57
Timothy B. Hays '79
Jack N. Hays '72
John G. Hazard '68
Gerald Peter Hees '83
Thunderbird offers a quality education and is truly A LIFE-ALTERING EXPERIENCE.
By consistently contributing, you can make a permanent investment in a unique
institution that touches lives and helps shape the future. And, in the words of
Mahatma Gandhi, such participation may exponentially allow you to
"BE THE CHANGE YOU WANT TO SEE IN THE WORLD."
ALEANA HILES '78, THUNDERBIRD GLOBAL COUNCIL, LEADERSHIP DONOR
THUNDERBIRD REPORT TO INVESTORS FALL 2003
Thomas L. Henderson '75
William E. Henley '48
John Denver Henson '48
James E. Hershey '84
Paul L. Hertenstein
Edward D. Hill '66
George L. Hiller '72
Scott V. Hitchcock, Jr. '74
Thomas Dudley Hobson 111'79
Philip D. Hoffman '58
Sharon Ann Hoffman Corrigan '81
Carl N. Holmes '69
David Wheeler Holmes '85
Jeane Hoover Stetson '80
Arthur F. Humphrey III '79
James L. Hyek '60
Charles L. Irby '77
Susan P. Irick Hacker '83
Johnson & Johnson Company
Daniel T. Jacobsen '59
Jahandar Jahanbani '83
Diane Berry Jakubowski '89
Alfred P. Jankus '47
James M. Janovsky '73
Bradley S. Jensen '85
William A. Jetter '66
Ashok H. Jham '78
James Fleming Johnson '85
Wallace L. Johnson '59
Farnham J. Johnson, Estate of '50
Timothy Robert Hunter Jones '69
Rebecca Judd '76
Michael F. Julian '69
Harold Kalmans '47
Kelly Anne Karbon '81
Richard G. Karrer '58
James B. Kelly III '64
Ralph R. Kelly, Estate of '52
James R. Kenley '80
Kathleen M. Kidder '69
Joseph I. Kimm '68
Edward K. Kimmel '76
Timothy King '47
Leonard Joseph Kistner '74
Joseph Mark Klein '47
Barbara j. Kleuskens Peterson '86
Curtiss Klus '61
Nicola Alexander Klutho '83
William A. Klutho '83
Kim Marie Koeller '86
James G. Kohl, Jr. '71
Jonathan E. Kranz '77
George D. Krempley '77
Thomas F. Krill '69
William C. Kristy '72
Elizabeth Grace Kuhlman 'SO
Mihoko Kushida '92
Charles A. Lagergren '64
Peter Gregory Lamberton '79
Richard Lannin '70
Ashia Lee Derksen '92
Susan D. Libera Knust '77
David C. Lincoln
George R. Lindahl.Jr. '54
Kathryn Dawn Lindquist '84
Darrell Y. Lininger '62
Gregory L. Linker '78
Jack E. Lockledge '55
C. Day Lohmann Breitag '85
Richard B. Loth '62
Nicholas R. Lubar '74
Kent E. Lupberger '80
L. Shippen Luquer, Jr. '57
Carol Anne MacDonald Rossidivito '91
John A. Macy '52
Martin Andrew Mahowald '83
Franklin H. Mann '75
Mary Lynn Manning '86
Jeffrey J. Marchant '67
Lowell K. Marcus '48
John F. Marshall '79
Lawrence Lee Martin '72
Theodore U. Martin '70
Jeannie Teresa Martin Harbottle '87
Phillip M. Martineau '77
Barry J. Mason '58
Robert H. Mason '78
Nancy Mathis Edwards '58
John R. Mattison '70
Pamela Sue Maurus '90
James A. McClung
Ronald R. McDaniel '73
John P. McGill '58
Robert L. Mcintire '47
John Phillip McKay, Jr. '80
H. Parker Mclaren '57
Beatrice Elizabeth McMillan '90
Lynn E. McNeal '75
John William McRandal '84
Mary Katherine McTague '89
Michael P. McTigue '70
Mona M. Mejac Knutson '85
Kim Elaine Metli '84
Thomas Gordon Miller '86
Jeannette Lynn Miller '90
Alfred F. Miossi '48
Kim Harold Mitchell '83
Shahab E. Mofidi '82
George H. Moore '85
Michael Joseph Moretti '82
Thomas D. Morse '66
Duane D. Mowry 'SO
Robert B. Moyer ' 48
John Pierre Moynier '67
John L. Muncy '70
The Northern Trust Company
Alexander E. Naughton '70
Samuel A. Neblett '53
Dana A. Nelson '52
Gary W. Nelson '65
John F. Nielsen '47
Nona Patrice Niner '81
J. William Nishnick '79
Michael Nissman '70
Karen S. Norelli '80
William L. Nystrom '60
Carolyn O'Malley '71
Robert E. O'Neill '70
Oppenheimer Foundation
Roland James Obey, Jr. '87
Bruce Bennett Olson '82
Gary R. Olson '73
Stephen P. Onuparik '70
John Lawrence Otto '82
Lise Margaret Ovregaard Hain '82
Philip Morris USA
L. Roy Papp
Eileen C. Parisi Walker '92
James H. Parker '61
William H. Parker '65
Jerome Kay Pascoe '65
Diana Kay Pecen '87
Julie Pennington Westendorf '86
Isabelle M. Peper '91
William Alan Perry '92
Diana Perry Doyle '78
Clarice Jane Peters '84
Amy Therese Petersen '83
The library periodicals collec:tiol"l
which once focused on Latin
afl,ew.spClpe'rs and magazines
major country on
any business topic.
Gloria G. Peterson Shuman '55
Walter Brooks pfister '62
Luis C. Pi -Sunyer '64
Aldo Pia '72
Edmund o. Piehler, Jr. '68
Glenn William Pike '91
Vladimir A. Pizarev '82
Charles A. Platt '66
Henry R. Poertner '69
John C. Polhemus '69
Donna R. Pollack Hershkopf '75
Thomas M. Preston '65
Rita Esther Previtali '83
Richard E. Punnett '55
Mary-Louise QUinn '83
George R. Rainoff '55
Aymen Jamil Rajeh '91
Reed Charles Ramlow '88
Theodore Joseph Rectenwald, Jr. '78
Alan Lee Reese '72
Lance M. Renault '71
Pamela Reynolds Ryan '71
Edward Steven Riquelmy '88
Christopher Peter Ritten '87
Michel Henry Rittenberg '75
Donald B. Roberts '57
Alvin G. Robins 'SO
James Arnold Rodgers '89
Clyde K. Rodkey, Jr. '48
8radley M. Roof '73
John J. Ross '60
David D. Rotchadl '75
Jeffrey P. Rudolph '69
Gary B. Ruedebusch '72
Linda Mary Russ Perlstein '76
John Francis Ryan '72
Seagate Technology
Sprint Foundation
Jaime Joaquin Saavedra '87
Mario G. Sabatini '74
J. Phillip Samper '61
John Rickey Sample '77
Cliff Joseph Samuelsen '81
Wallis R. Sanborn II '62
8rent j. Sanford '68
Norman H. SangUinetti '52
Mike A. Santellanes, Sr. '60
James J. Sarrail '92
Robert j. Saum '91
Debra S. Schatzman '83
Christof J. Scheiffele '62
Susan Carla Scheller Arsht '87
Thomas Freese Schields, Jr. '75
David Lowell Schisla '87
William Schlichter, Jr. '75
Joseph C. Schmieder '78
Denis W. Schreiber '79
Samuel Schulman '52
Judith Ann Schulz '88
James C. Schwartz '70
Alexander I. Schwartz '80
Gerard C. Scott '57
Andrew Martin Scott '90
Mary Ann Seabrook 8ashaw '82
James K. Secunda '76
R. Lee Selby, Jr. '74
Harold B. Shaeffer '63
Robert Leon Shanks, Jr. '76
William M. Shapiro '65
Dale L. Sheets '55
Edrie M. Shenuski '88
Susan Shively Anderson '79
Robert A. Shuman '56
Gerry o. Sibley '73
FALL 2003
Ronald Vernon Sigler '58
William B. Simmermon '90
Thomas C. Singleterry '76
Patrick j. Sinnott '78
Gary F. Smith '67
Fred M. Smoot '66
Richard Snell
Sheldon L. Snook '85
John C. Solomon '72
George Anthony Sorenson '80
Mary Southworth Curran '82
Horace Speed III '62
Shirley A. Spiller '89
Robin Warren St. Charles '88
Frederick Bond Stambaugh '79
John D. Stanton '62
Joel A. Stead '85
Frank A. Steffey 73
Eric Von Steinwinder '92
Lloyd C. Stevens '92
Cassandra D. Stiles 76
James Moore Stothers '57
Phillip N. Strongin 71
Eugene C. Sullivan II '67
Thomas Franklin Surrency '62
Michael M. Sussman '64
Carl Allen Swedberg '92
Jay Harrison Tate '61
Martin Junius Taylor '61
Melissa R. Taylor '81
Constance L. Thatcher '76
Victoria Thomas Godfrey '86
Richard Lee Tollefson, Jr. '83
Barry M. Tonkin '77
Ricardo Juan Torres '81
John E. Tuberty '60
Harry Benjamin Turner '51
William C. Turner
United Technologies Corp.
U.s. Dept of Education
Shigehiro Uchida '61
Martha S. Uhlhorn '78
Kenneth S. Vanosky '71
Martha R. Von Hillebrandt '80
Mavis Voris
William Voris
Pieter Arie Vos '58
Charles Michael Vrtis '82
Whirlpool Foundation
Robert J. Walker '60
Kurtis Raymond Wallin '90
William T. Walsh '71
T. Michael Walsh '64
George H. Walters ' 47
Mary Elizabeth Ward '84
Clarence L. Wasson, Jr. '49
Catherine Mary Waterman '82
Anne Webster Hayden '69
George A. Wenz '70
Robert L. Westcott '58
Henry C. Whiting, Jr. '47
H. Gene Wick '60
Bruce Gregory Wilcox '80
W. David Wilson '77
Heidi Winkelman Hammel '78
Kenneth D. Winter '49
Lynn Eileen Wise Oliver '81
Gary Allan Withall '73
Charles T. Wood '53
Charles E. Workman '61
Susan Lynn Worsham '80
Joseph N. Wyble 'SO
Ladimir Joseph Zvanovec '56
Rene Armin von Rautenkranz '88
THUNDER81RD REPORT TO INVESTORS
Total Commitments for Gifts over $50,000 •
THE FOLLOWING LIST HIGHLIGHTS INDIVIDUALS,
CORPORATIONS AND FOUNDATIONS THAT HAVE
MADE COMMITMENTS OF MORE THAN $50,000
DURING FISCAL/ACADEMIC YEAR 2002-2003.
AmericaEconomia
John F. Burlingame
Citigroup Foundation
The Coca-Cola Foundation
Continental Promotion Group, Inc.
Po Chung and the Creative Foundation
Harry Allyn Cockrell '73 and Creative
Quest SDN BHD
John S. Cullison '72 and Diana Kissil
Egon Zehnder International
(Gary J. Matus '72)
Theodore J. '72 and Joan Fuller and
the Fuller Family Foundation
The Goodyear TIre & Rubber Company
Samuel S. '88 and Rita Garvin
Hacker, William D., Estate of
Institute for Supply Management
Farnham J. Johnson, Estate of
Margaret l. leigh, Estate of
David C. and Joan lincoln
Guillermo luksic Craig and Virginia Prieto
de luksic
Raul Pablo Masvidal '66
Cynthia Ploss Robinson, Estate of
The Starr Foundation
Mary Teagarden
U.S. Department of Education
W. Randolph Hearst Foundation
Bruce Gregory '80 and Isabel Maria
Stainow Wilcox '81
TOTAL COMMITMENTS
CORPORATE, FOUNDATION,
ORGANIZATION, INDIVIDUAL AND
GOVERNMENT DONATIONS BY SOURCE
2001-2002
Total commitments include new pledges,
planned gifts, in-kind donations and cash gifts.
Non-Alumni $1,542,465 ---------,
Alumni $1.187,659 --------,
Corporate $618,658 ------,
Government $313,883
Other
Total $ 3,926,931
8 THUNDERBIRD REPORT TO INVESTORS FAll 2003
Legacy Society • THUNDERBIRD THANKS THE
FOLLOWING INDIVIDUALS WHO HAVE PROVIDED
PLANNED GIFTS BY INCLUDING THE SCHOOL IN THEIR
ESTATE PLANS.
John R. '59 and Joan Bogert
laurie Staebler Brashier '88
Richard J. '73 and Toby Breit
Frederick C. '56 and Mary E. Brenner
John F. Burlingame
Jean Fortriede '53 and Thomas Burns
Nancy Rose Bushnell '76
John l. Campbell '67
Rosa J. Castiel '89
Neil M. Clark '49
Ward H. Clarke, Jr. '66
Bruce l. Crumley '76
John S. Cullison '72 and Diana Kissil
Ellen Marie Dieringer '81 and Bruce D.
Heilbrun
Jack E. '60 and Renee Donnelly
William C. III '67 and Betty Jo Dyer
David H. Fichter '67
David G. Fisher '67
Victor C. Fontaine '67
James T. Grossmann '67
Eleanor Sheedy Hamric '76
Thomas O. Harbison
Belmont Haydel, Jr. '57
Roy A. Herberger, Jr.
Thomas B. '53 and Mary '53 Hitchcock
John M. Holliman III '77
Julie Houk Goodrich '74
Frank l. Hubbard, Jr. '53
Farnham J. Johnson '50 '78
Harold '47 and Wilma Kalmans
Allyn Wayne '73 and Anntoinette lucia
Keiser
Joseph Mark Klein '47
Daniel J. '80 and June Laraway
John H. Latham '71
Toby R. Madison '52
Charles H. Mannel, Sr.
Raul Pablo Masvidal '66
John F. Nielsen '47
Sherman J. Olson 'so
William H. '65 and Mary Barmore Parker
Roger D. Potdevin '87
leonard M. and Pauline Rickards
Sheridan l. Risley '50
David H. Roberts 73
J. Kenneth '57 and Jeannette Seward
lloyd A. '66 and Ruth Straits
John E. '69 and Susan Sullivan
Rodney A. Taylor '75
Phillip S. Tedesco '54
Constance l. Thatcher '76
Newell W., Jr. '56 and Barbara Todd
Richard lee Tollefson, Jr. '83
William C. Turner
William

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Full Text

SAUDI
ARAe>IA
&AHRAIN
QAl"AR
2 Risk vs. Reward
For multinational companies operating in the Middle East,
risk management has special significance. Alumni working in
Iraq share their thoughts on the opportunities and risks asso­ciated
with doing business in one of the world's most contro­versial
regions.
On the Cover: Businesses operating in the Middle East have to
consider the trade-offs - the balance between risk and reward.
Just how much risk is worth the potential pay-off?
Left: Crowds and cars compete for space in a street market near the
Central Bank of Iraq in Downtown Baghdad on May 29, two months
after the Iraq war was initiated. Photo by Thomas Hartwell, USAID.
Competitive Edge
More than 80 percent of alumni who participated in an
online language and culture survey said that foreign language
skills provided them with a competitive career advantage.
12 5-Year Roadmap
Thunderbird's strategic plan draws upon the School's
international heritage, emphasizing global expansion, diverse
programs and a growing emphasis on working professionals.
15 Flying High
F-16 fighter pilot Luis Villanueva '02 soars to new heights in
his position with Florida-based Marsh Inc.
16 An Ounce of Prevention
Tony Young '03 learned the value of having overseas medical
and travel assistance coverage and urges traveling T-birds to
do the same.
18 Relishing the Rewards
T-birds share their passion as corporate citizens, leaving last­ing
imprints on the communities and initiatives they touch.
20 Creative THINCing
Student-led think tank provides out-of-the-box solutions to
corporations worldwide and organizes an event to crown the
most innovative MBA team in the world.
26 Emerging Global Leaders
Thunderbird's Executive Education programs prepare working
executives for the rigors of international management.
Center spread • Report to Investors
28 T-bird News
34 Network News
41 Cl ass Updates
THUNDERBIRD MAGAZINE
Volume 56, Number 1, 2003
A publication of the Marketing and Communica tion
Department ofTIlllllderbird, TIle American Graduate
School of International Management, 15249 N. 59lh
Avenue, Glendale, AZ 85306-6000
INTERIM DIRECTOR, MARKETING AND
COMMUNICATION DEPARTMENT
Susan Coffrolh
ACTING EDITOR
Melissa Crytzer Fry
CONTRIBUTORS
Bealrice Bernescut '90, Silvia Cannagnani,
Susan Coffrolh, Nelda Crowell, Melissa Crytzer Fly,
Kristen Jarchow, Terrie LoCicero, Jessica McCann,
Steven Misshu la '99, Merry Montgomery,
John Staczek, Cheryl Sweel
DESIGN
Pat Kenny Graphic Design
VICE PRESIDENT FOR INSTITUTIONAL ADVANCEMENT
AND DIRECTOR OF DEVELOPMENT
Richard Tollefson, Jr. '83
ASSISTANT VICE PRESIDENT OF ALUMNI RELATIONS
Anne-Marie Nelson '95 (EM IM)
Submissions may be emai led to Susan Coffrolh
at coffrotS@lhunderbird.edu; or sent by fax to
(602) 978-7626.
Thunderbird is the oldest graduate management
school in the United States focused solely on preparing
international business leaders. Ranlled among the best
in the world by U.S. News and World Report, Wall
Street Journal and Business Week tile School offers
a unique curriculum t.hat emphasizes cross-cultural
communication, language and world business sliills to
compete in today's global economy.
More tlwn 33,000 men and women in .139 different
countries have graduCl ted from Thunderbird since
1946. Thunderbird is accredited by AACSB­International
Association for Management Education,
the North Centl"lll Association for Colleges and
Schools lind the European Quality Improvement
System (EQlIIS).
VISIT THUNDERBIRD AT www,thunderbird.edu
PRESIDENT'S MESSAGE
I
f-
~
::;
z
'o"
I
Z
Z
~
Stepping up to the Challenge
The ability of people and their organizations to react responsibly in the midst of
difficult situations is a topic that has fascinated scholars for hundreds of years.
The global society we live in continues to deliver challenges to all of us at an increas­ing
rate.
The Thunderbird community has shown a tenacity and spirit of strength character­istic
of the School's rich history. In the midst of a challenged economy, the SARS epi­demic,
global political unrest and shifting demographic trends, we have had to deal
with the effects on enrollment, our alumni and our general business situation.
Such challenges have energized the Thunderbird community, creating an almost
palpable excitement in the air. Students have revived campus clubs, sponsoring
national and global events that are attracting international corporations, alumni and
guests to campus by the hundreds. Faculty and staff have devoted countless hours to
their work, resulting in top rankings in U.S. News & World Report and The Financial
Times. A new Center for the Cultures and Languages ofInternational Management will
begin operations in the fall, thanks to the generosity of Sam Garvin '88 and his wife,
Rita. The School also accepted its largest enrollments in the Global MBA for Latin
American Managers and Executive MBA in International Management programs in
history. These accomplishments parallel the School's strategic direction and 5-year
plan, which Board members approved in April and I share in this issue.
And, finally; Thunderbird's generous volunteer and financial supporters - alumni,
friends, corporations, foundations and government - have raised the bar, even during
these troubled financial times. New financial commitments to the School during
2002-2003 totaled more than $11 million - a 180 percent increase. In appreciation,
we recognize your contributions in our Annual Report to Investors. As we ride this wave
of optimism during challenging times, I look to the future with excitement and prom­ise,
knowing that our constituents rise to the occasion under high-pressure situations.
SAUD'
ARAe>t A
~AHRAIN
QA'fAR
.M ID D
:E
BY JESSICA M CCANN
• REWARD
Contemplating the Trade-Offs
of Conducting Business
in the Middle East
dentifying known hazards, anticipating unforeseen disasters and safe­guarding
your company and your employees against all of them. It's the
. definition of risk management, and it's an integral part of any business.
For those businesses operating in the Middle East, however, risk manage­ment
has special significance. That's because you also have to consider the
trade-offs, the balance between risk and reward. Just how much risk is
worth the potential pay-off?
There are two distinct types of risk man­agement.
One deals with financials - credit
risk, market risk, operational risk. These vari­ables
can be calculated, measured, analyzed.
The other type of risk management deals
with unexpected or accidental losses. It's
more a matter of safety and security, and that
is measured in a somewhat dif­ferent
way.
"Even after seeking the opin­ions
of experts and attempting
to quantify the threats facing a
business, the decision to enter
any particular geographic area
depends greatly on the manag­ds
own gut feelings," said John
O'Connell, a Thunderbird pro­fessor
of international insurance
. and the c.v. Starr Chair in International Risk
Management. "How much risk, how much
responsibility, do you want to take on?"
What sort of gut feeling does the average
global executive get when contemplating
business risk and the geopolitical turmoil in
the Middle East? Queasiness, it would seem.
According to a survey released by the World
Economic Forum in June, business confi-dence
continues to be deeply affected by the
global geopolitical situation. The survey
found that of the one-third of businesses that
had put investment plans on hold since the
Iraq war, 75 percent still had not restarted
investment; and 30 percent overall are pes­simistic
about the future business outlook.
Many T-birds, on the other
hand, appear to have iron stom­achs.
In an informal alumni
opinion poll conducted on My
Thunderbird (MTB) in July, slight- o
~ Iy more than 80 percent of ..i
respondents believed the poten- ~
tial rewards for multinationals ~
z
operating in the region are u:l
I- greater than the potential risks in ~
at least a few, if not most, Middle -
East countries. (See Risky Business? sidebar on
page 5 for more results of the opinion poll.)
Take Iraq. Some T-b irds believe so strongly
in Iraq's potential that they're working in the
country as expatriates, despite the potential
risks involved. Lewis Lucke '77 is the United
States Agency for International Development
(USAlD) mission director in Iraq.
"We're getting people mobilized and into
Far left: A U.S. Army
sergeant guards the
entrance of a
computer center at
Iraq's Ministry of
Finance to prevent
possible looting
(May 30). This page
(left): As life regains
a sense of normalcy,
an Iraqi man sells
watermelons at a
roadside stand in
central Baghdad.
Above: Iraqi children
at Basra International
Airport water treat­ment
facility.
FALL 2003 THUNDERBIRD MAGAZINE
Clockwise from top: Lewis Lucke '77 outside the Coalition
Provisional Authority headquarters in the former Iraqi
Republican Guard Palace in Baghdad. As vice president of crisis
management for AIG, Diane Borden '92 traveled throughout
the world, including many countries in the Middle East. Here,
she visits a Syrian mosque wearing a traditional burka and
scarf, demonstrating her respect for the local customs of the
community. Randy Jackson '97 (wearing a white hardhat) is
pictured on location at Baghdad
International Airport. He is on
assignment with the Bechtel Corp.
working on USAID projects to
reconstruct Iraqi infrastructure.
Opposite: Pictured in South
Kalimantan, Indonesia, Steven
Moore '00, a program officer with
the International Republican
Institute (IRI), spent the last year
and a half working there to help
foster democracy. Moore and IRI
co-workers are now helping to
bring democracy to Iraq.
the country as quickly as we can," said Lucke, who has been working
on reconstruction plans with his team since October 2002, when the
conflict in Iraq began to appear imminent.
The USAID Iraq program began operations in Washington, D.C.,
then moved to Kuwait in January. Today, about 50 staff members are
headquartered in Baghdad, with smaller hubs operating in Mosul in
northern Iraq and Basra south of Baghdad. Roughly 350 contractors
and grantees are also in the country working to provide humanitarian
and reconstruction assistance to the people of Iraq - to encourage
growth, support democracy, and restore health and education systems.
"It has been challenging, but we are getting a lot done and we have
an awful lot of cooperation from the Iraqis," stressed Lucke, whose 24-
year career with USAID has taken him to Tunisia, Mali, Haiti and
Jordan, among other countries.
"The success of our program really depends on being able to make
it an Iraqi program," he said. "We want Iraq, with all its advantages, to
be able to take its place in the world as a peaceful and productive
neighbor in the Middle East," he said. "It's a group of talented, smart
people who are striving for something better for themselves and their
kids. I know that sounds sort of 'pie-in-the-sky; but it is the truth."
Steven Moore '00, a program officer with the International
Republican Institute (IRI), agrees.
COUNTRY SNAPSHOTS
4
UNITED ARAB EMIRATES (UAE)
The UAE's per capita GOP is not far below those of
leading West European nations. Its generoSity with
oil revenues and its moderate foreign policy stance
have allowed the UAE to playa vital role in the
affairs of the region.
Populat ion: 2.5 million
Literacy rate: 79 %
Per capita GDP: $21.100
Key industries: petroleum, fishing, petrochemicals,
construction materials
Export partners: Japan 30%, India 7%, Singapore
6%, South Korea 4%
THUNDERBIRD MAGAZINE FALL 2003
"I think that Iraq is one of the countries
with the most promise in the Middle East,"
he said. "This is a time of great opportunity
for Iraq. The international community is focused on helping them
develop, and they have tremendous natural resources. It will be inter­esting
to see what they do with this time as a people."
The IRI is a nonprofit, nonpartisan organization dedicated to
advancing democracy, freedom, self-government and the rule of law
worldwide. It has active programs in more than 50 countries.
Moore spent the last year and a half working with the IRI in Indo­nesia
to help bring democracy to the country. After his successes
there, he has turned his sights to Iraq. Moore is based at IRI's
Washington, D.C., offices and took his first data-gathering trip to Iraq
in August. He is eager to set up shop in Baghdad and begin working
with the local community.
The short-term business opportunity in Iraq is significant. The
USAID reconstruction budget is expected to total more than US$2.4
billion, with total reconstruction estimates ranging from US$20 bil­lion
to $85 billion. According to federal law, USAID contracts must be
awarded to American firms, but the subcontracts are open to bids from
companies around the world. And the need is diverse. A request for
proposal (RFP) in June sought to foster economic rehabilitation and
reform. Among the top contenders are companies such as Booz Allen
Hamilton, a global leader in strategy and technology consulting;
Deloitte & Touche, one of the nation's leading professional services
IRAQ
The country's future is dependent upon the pace of
reconstruction, the lasting commitment of the international
community and the fortitude of the Iraqi people. Humani­tarian
need and damage to infrastructure as a result of
the conflict have been far less than originally feared. Yet,
significant political, economic, humanitarian and security
challenges certainly exist and will remain for some time.
Population: 25 million
Literacy rate: 40 %
Per capita GDP: $2,400
Key industries: petroleum, chemicals, textiles,
construction materials, food processing
Export partners: Un ited States 60%, France 8%,
Netherlands 7%, Italy 6%
firms; and IBM Global Services, an information technologies pioneer.
Other RFPs seek programs to expand agricultural productivity; to
improve the primary, secondary and higher education systems; and to
provide medical supplies and health services and training.
Other bright spots are on the horizon in the Middle East, as well.
Jordan's membership in the World Trade Organization (WTO) in 1999
and its subsequent free trade agreements with the United States and the
European Union (EU) have helped boost trade by hundreds of millions
of dollars and created thousands of new jobs in the country.
Negotiations are under way between Morocco and the United States for
a similar free trade agreement, and talks with Bahrain are likely to begin
next year. In addition, Saudi Arabia, Lebanon and Yemen are negotiat­ing
at the WTO for membership. It all adds up to increased trade and
increased opportunity - for local and multinational companies alike.
Despite the promising economic and political reforms that have
begun to take shape in the Middle East, however, the region is sti ll
riddled with risk.
"It's a tough neighborhood, no matter what you do," said Lucke. "You
can have policies and perfect approaches, which really don't exist yet in
very many places here, and you're still going to have some of the prob­lems
that are rooted in the religious conflict and the territorial disputes."
It is certain that violence and conflict have a negative influence on
trade and foreign investment; and that influence extends far beyond
the conflict-ridden countries themselves, spilling over to all of their
neighbors. Continued on page G
I / .
QATAR
In 2001, Qatar resolved its langstanding border disputes with
bath Bahrain and Saudi Arabia. Oil and natural gas revenues
enable Qatar to have a per capita income not far below the
leading industrial countries of Western Europe.
Population: 800,000
Literacy rate: 80 %
Per capita GOP: $21,200
Key industries: crude oil production/ refining, fertilizers,
petrochemicals, steel reinforcing bars, cement
Export partners: Japan 43%, Singapore 8%, South Korea 6%,
United States 4%, UAE 2%
Unemployment rate: 2.7%
Editorial note: "Snapshot" statistical data obtained from 2002 World Factbook.
Same unemployment information was not available.
RISKY BUSINESS?
T-birds Don't Think So
Many T-birds are optimistic about the rewards of conducting
business in the Middle East, according to an informal alumni
opinion poll conducted on My Thunderbird (MTB) in July.
Slightly more than 80 percent consider the potential rewards to
be greater than the potential risks in at least a few, if not most,
Middle East countries.
Furthermore, nearly 80 percent of respondents believe that,
compared to doing business in other regions of the world, the
level of risk for multinational companies operating in the Middle
East is either "about the same" or "somewhat higher." About 17
percent deem the level of risk to be "much higher" in the region.
What countries hold the most potential? Iraq, Turkey, Jordan,
Qatar and United Arab Emirates (UAE) were among those noted
most frequently.
Angelina Sarah '02, a citizen of the United States who was born
in Syria, wrote, "My general opinion is that Syria and other Middle
Eastern countries are an untouched market by most U.S. busi­nesses.
The Europeans have been taking advantage of that for
A .. d fi d many years." maJonty ... i enti 'e A majority of respon-resolution
of the Israeli- dents (68 percent)
I identified resolution of
Pa estinian conflict as the the Israeli-Palestinian
most critical issue in bringing
stability to the region, far out­weighing
terrorism, expanding
free trade and rebuilding Iraq.
conflict as the most crit­ical
issue in bringing
stability to the region,
far outweighing the
issues of fighting terror­ism,
expanding free
trade and rebuilding Iraq. Several respondents also added democ­racy
to the mix, citing the need for transparent governments and
fair legal systems in bringing stability to the Middle East.
Mark Fritz '02, a trade marketing analyst working for Philip
Morris International in Tokyo, believes opportunity in the Middle
East is greater than the risk. Yet, regarding stability in the region,
he wrote, "It won't be for at least a generation until those in power
move away from Islamic conservatism and begin to integrate
Western culture. Then change can occur."
More than 60 alumni responded to the online poll during a
two-week timeframe. Almost three-fourths had some personal or
corporate interest in the Middle East, including past work experi­ence
or a desire to work there in the future. Respondents' countries
of origin included China, Ecuador, France, Germany, India, Japan,
Jordan, Mexico, Morocco, Russia, South Korea, Syria and Turkey;
about 60 percent ofrespondents were born in the United States.
-1M
JORDAN
Aggressive economic ref arm efforts since 1999, including memo
bership in the WTO and free trade agreements with the United
States and EU, have helped improve productivity and put
jordan on the foreign investment map.
Population: 5.3 million
Literacy rate: 87 %
Per capita GOP: $4,300
Key industries: pharmaceuticals, petroleum refining, cement,
potash/ phosphates, light manufacturing,
tourism
Export partners: India 11%, United States 10%, Saudi Arabia 6%,
Israel 4%
Unemployment rate: 16%
FALL 2003 THUNDERBIRD MAGAZINE
"The continuing frustration in Jordan is Left: Iraqi children stand outside the National standard precautions - he varies his daily
schedule, rotates with his co-workers the cars
he takes to work, and carries extra cash with
him when things heat up, in case he needs to
pay exorbitant amounts to leave the country.
More importantly, though, he stays in tune
with the local community.
that when something goes boom in any part
of the Middle East, investors stay away and
tourists stay away," said Lucke, who served as
USAID mission director in Jordan from 1996
to 2000, a pivotal time for economic reform
Examination grading center in Baghdad that is
occupied by u.s. fo rces. Right: An Iraqi
telecommunications building that suffered
and growth in the country.
damage during the war lies in ruins in central
Baghdad. Forces are working to restore telephone
service to the city of 5 million.
When it comes to international risk man­agement
in general, there are many factors and variables to take into
account - from natural and environmental hazards to crime and
endemic disease. However, when it comes to the Middle East, political
instability and terrorism concerns top the list, especially for American
and other Western interests.
In many respects, risk management can be characterized as risk
avoidance. It's a process of identifying potential risks and then taking
steps to avoid them. When risk is unavoidable, a number of manage­ment
tools can help mitigate or reduce its potential impact on a com­panyand
its employees.
Insurance is one important tool, according to Diane Borden '92,
vice president of AlG's Private Client Group. AlG is the world's lead­ing
international insurance and financial services organization, with
operations in approximately 130 countries. Before her current posi­tion,
Borden was vice president responsible for worldwide crisis man­agement
operations.
AlG's crisis management products and services include kidnap and
ransom insurance, terrorism insurance, political evacuations, child
abduction negotiations and crisis containment. While such insurance
provides an important safety net for companies and individuals,
Borden stressed that the consulting and education aspects of AlG's
services are just as important, if not more.
"When you're in a high-risk environment, often if you just do one
simple thing, such as taking a different route to work everyday, you can
reduce your risk by as much as 75 percent," she said.
That has certainly been Moore's experience working in Indonesia,
and he expects the same to be true in Iraq. IRI provides its employees
with a whole range of coverage, including evacuation insurance. That's
all well and good, Moore said, but he still focuses more on ways to
avoid needing it. ''I'm glad we have it, but ifI have to use it, then things
have gone too far. "
To keep safe in volatile environments, Moore exercises what he calls
6 THUNDERBIRD MAGAZINE FALL 2003
"Talking to people on the ground is always
the best source of information," he said. "If you base your decisions
on what the media says, you often have things skewed in the most hys­te.
rical sense. I learned early that the media's assessment of Indonesia
is extreme. It was actually a ve.ry peaceful place for the most part."
That highlights another important risk management tool - infor­mation
. Multicultural communication classes, defensive-driving
courses and site security surveys all playa vital role in mitigating risk.
In addition, Borden encourages clients to be good corporate citizens.
"Be culturally aware, promote economic growth in the host coun­try,
" she said. "Invest in local projects, local schools. If you're known
as being a part of the community, you're less likely to be a target."
O'Connell, who has more than 30 years experience working, teach­ing
and consulting in inte.rnational insurance risk management, agreed.
"When you go into a particular country, the best risk management you
can do is to become a part of the local scene of that country."
A multinational company with operations in the Middle East also
must properly train and fu lly inform its employees and their families.
Those individuals must understand and respect the local laws, tradi­tions
and culture of their host country - and they must understand
the potential risk they will encounter if they do not.
"A Western woman, who has full freedoms in the United States,
needs to know that if she's going to Saudi Arabia, she's riding in the
back seat of the car," said Borden. "If she doesn't, she is going to get
arrested ."
The risks to multinationals conducting business in the Middle East
are indeed real - from terrorism and political instability to religious
conflict and the continued threat of war.
Yet, with cultural awareness, informed employees and effective risk
management, the potential rewards can be just as real- from the sat­isfaction
of bringing hope to a long-oppressed people, to the finan­cial
reward of provid ing products and services in new, la rgely
untapped markets. •
Top to bottom: Street
scene in Dyarbakir,
Turkey, March 2003.
Street vendor Cengiz
Budus (left) with
friend. Kurdish politi­cal
activist Mehmet
Ates at the Kurdish
Cultural Center in
Dyarbakir.
On March 21, 2003 - three days after
the start of the Iraqi conflict - I set
off for the remote Turkish city,
Dyarbakir, which lies in the southeastern
region that borders Iraq, Iran and Syria. A
close friend of mine is the bureau chief for a
small but influential newspaper, and she
thought it would be a great opportunity for
me as a photojournalist. We were, after all,
heading into the control center for the
Turkish military, and tensions were high.
I spent most of my
time interacting with
the local Kurdish pop­ulation.
But, in a few
cases, I was able to go
along on some inter­views
with local
Kurdish leaders. One
such interview was
with Mustafa Karahan,
the local chairman of
DEHAP, a Kurdish
political party that a
Turkish state court
moved to abolish this
past spring. One
evening, Karahan
described to us the
challenges of being
Kurdish in Turkey. His
organization wants
Kurdish concerns to be
addressed in Turkish parlia­ment
- such as recognition
of the Kurdish language,
which, until recently, had
been outlawed.
There was no bitterness in
his description, but his frus­tration
was clear. I couldn't
help but ask Karahan if
he was nervous about
being arrested. This
elicited a round of
clluckles - apparently,
I was showing my
naivete. He explained
that being a Kurd in
Turkish politics nor­mally
meant having
been arrested - espe­cially
if one was part of
the older generation of
PHOTOS AND TEXT BY STEVEN MISSHULA '99
political activists. Karahan had been arrested
numerous times and jailed for more than 10
years for his political activity. His assistant,
who was about my age (early 30s), also had
been incarcerated for a few years.
Other Kurds generally expressed the feeling
that, although war is regrettable, they
admired American bravado. They were rela­tively
grateful, because they felt that their
Kurdish brothers in Iraq would be better off
with a deposed Ba'athist regime.
Many local villagers also expressed their
concerns about the economic impact of the
war. Turkey had lost billions of dollars worth
oflegal (and illegal) petroleum trade after the
1990 Persian Gulf War.
There had been an enormous illicit trade of
petroleum across the border, they explained,
which afforded them an unrecognized
income. During the months leading up to the
war, the border had been closed to all truck­ing
without a special license. In one village,
trucks and their tanks were strewn about like
relics at a junkyard. Thus, the local economy
ground to a halt, imposing a hardship on the
local population and rousing resentment
against the United States.
A Kurdish street vendor from Dyarbakir,
Cengiz Budus, responded to that resentment
by saying he thought it was entirely too
myopic. He understood the economic hard­ship
that villagers are suffering (and insisted
he was suffering economically, as well), but
was happy for the American-led action in Iraq.
He believed that a democratic influence in the
area would be helpful to the entire region.
The Kurdish region of Turkey still has sig­nificant
hurdles to overcome. In July, the U.S.
military detained 11 Turkish soldiers in Iraq
for purportedly conspiring to kill a Kurdish
leader there. This has raised tensions between
the two NATO allies, whose relationship has
diminished since Turkish parliament failed to
grant the U.S. military the right to use Turkey
as a launch pad for action in Iraq.
Yet, southeastern Turkey seemed to me to
be ripe with bright, enthusiastic individuals
who are full of ideas and energy for improv­ing
their region's political and economic situ­ation.
Years of struggle and insurgency have
made the people eager for normalcy - both
politically and economically. I hope I will
soon return to the region to witness their
progress. •
An aspiring
photojournal­ist,
Steven
Misshula '99
first traveled to Turkey
in january to photo­graph
a story about a
Turkish documentary
addressing the plight
of the country's home­less
children. Misshula,
who earned a bache­lor
of fine arts degree
in photography from
New York University's
Institute of Film and
Television in 79 92,
eagerly accepted an
invitation to return to
the country several
months later to cover
events of the
Coalition-led conflict
in Iraq.
Above: Pictured is
Mustafa Karahan,
chairman of the
political party, DEHAp,
an offshoot
of another political
party that had been
closed by the Turkish
government.
FALL 2003 THUNDERBIRD MAGAZINE
Alumni Language Survey Affirms
Thunderbird Experience
I , Engli'h the only \,ngu'ge you need in
international business today?
T-birds answer with a resounding no,
according to a recent Internet survey on lan­guage
and culture. Of the 581 alumni who
responded, 82 percent said they gained a
competitive advantage in their careers from
their foreign language skills, while 89 percent
benefited from their cultural knowledge.
Those responses shouldn't surprise anyone
familiar with Thunderbird's curriculum. But
the catalyst for the study might, said Christine
Uber Grosse, Ph.D., Thunderbird professor of
business communication and developer of
the language survey.
"I overheard someone at Thunderbird
remark that English is the language of inter­national
business today, so foreign languages
aren't really necessary. I was astounded,"
recalled Grosse, who speaks Portuguese, Span­ish
and French, along with some German and
Arabic. "The monolingual view has always
been accepted in part of the American busi­ness
community, but I was surprised to hear it
at Thunderbird."
emeritus of applied linguistics and TESL
(Teaching English as a Second Language),
organized the conference of 10 researchers,
sponsored by CIBER (Center for International
Business Education Research, funded by Title
VI of the U.S. Department of Education).
Grosse posed the question: Do foreign lan­guage
skills and cultural knowledge give business
executives a competitive advantage in their
careers? The positive feedback she received
spurred her to submit a proposal to the Thun­derbird
Research Center, which awarded her a
grant in March 2002.
"No previous empirical study had investi­gated
this question," said Grosse, author and
co-author of several studies focusing on busi­ness
language.
THE PERFECT SAMPLE
The survey was developed in winter 2002
and piloted in January 2003 through Thun­derbird's
North America and Europe/Middle
East/Africa alumni councils. Anne String­fe
llow, Ph.D., assistant professor of global
business, recommended Surveypro.com,
THE RESULTS
BY TERRIE J. LOCICERO
Internet-based sofrware for survey develop­ment,
delivery and data reports. After some
discussion with colleagues, Grosse decided
that the best pool of respondents would be
alumni. After all, they had chosen Thunder­bird
for its pioneering tripartite curricu­lum.
And who would know better than T­birds
whether their language skills had
helped their careers?
Grosse teamed up with Anne-Marie
Nelson '95, assistant vice president of Alum­ni
Relations, who helped refine the survey
questions and provided access to 2,500 ran­domly
selected alumni from the classes of
1970 to 2002. In February 2003, T-birds were
contacted via e-mail, and asked to complete
a web-based survey; 581 responded, with
participation from every class year.
Respondents ranged in age from 25 to 64
years, with 71 percent male and 29 percent
female. (See The Results sidebars for addition­al
survey results.) More than one-third said
they use their skills daily, and 13 percent said
they use them frequently.
For the almost 50 percent who said they
occasionally, seldom or never use their lan­guage
skills, they unanimously stressed that
such skills add value - even when they don't
have many occasions to use them. One
respondent said, "Although [ don't frequently
use my Spanish language skills, the knowl­edge
of another language greatly enhances my
credibility with all foreign counterparts and
clients." Another stated, "At senior inter­national
business levels, English is spo­ken
by everyone, but the knowledge of a
The School has offered language
instruction for more than 50 years, in a
variety of settings, from its on-campus
MBA-related language programs and its
overseas immersion and exchange pro­grams
to its Executive Education offer­ings.
Until recently, when a non-language
degree track was introduced, Thunder­bird
was one of the few MBA programs
to require a foreign language.
The majority of respondents work in the United States
(66 percent) and Europe (17 percent). and are employed in
second language - especially by an
American - adds credibility when
working at an international level."
Grosse wondered whether the speak-er's
statement was true. Would mono­lingual
or marginally bilingual people
know what they were missing by not
knowing a foreign language? As a
researcher, Grosse felt that someone
should either prove or disprove this
assertion.
And in February 2002, she got the
opportunity, at a small UCLA-sponsored
seminar on research priorities in busi­ness
language education. Russ
Campbell, recently deceased professor
B THUNDERBIRD MAGAZINE FALL 2003
the banking/financial services; technology; consulting; and
industrial products/manufacturing fields. These mult ilin­gual
graduates reported speaking the follOWing languages:
PORTUGUESE 14%
JAPANESE 11%
CHINESE 9%
RUSSIAN 2%
ARABIC 2%
Grosse's research was presented at the GIBER Conference
on Business Languages and Communication in Miami,
Fla., on April 4, 2003. It also is scheduled for publication
in The Modern Language Journal.
COMPETITIVE EDGE
GAINED FROM FOREIGN
LANGUAGE AND CULTURES
Significantly, 89 percent of alumni
said that they studied a language while
they earned their master's degree at
Thunderbird. The rest waived the lan­guage
requirement because of prior
knowledge or study. More than half
said the edge they gained from foreign
languages was significant, while 28 per­cent
said they received some advantage
in their present job, or at some time in
their career. Only 18 percent reported
no gain from their foreign language
Continued on page 10
abilities. Grosse said the study also indicated
that proficiency in a language and degree of
familiarity with culture were related to a per­ceived
competitive advantage.
Some respondents felt a disconnect
because the language they had learned was
not the one they used later on in their career,
but a number of respondents said that fluen­cy
in any second language was valuable.
Commented one, "I only hire people who
have a good command of a language even if
we will not use that particular language skill
in the immediate future. It is the mental dis­cipline
and cultural enlightenment that sets
the Thunderbird graduate apart."
Of the 89 percent of alumni who reported
gaining a greater advantage from cultural
knowledge rather than from foreign lan­guages,
almost half (48 percent) reported
gaining a significant edge, while 41 percent
acknowledged some competitive edge
Curt Gruber '90 learned Spanish as a for­eign
exchange student in Uruguay and honed
his skills at Thunderbird. He first worked with
a promotional design agency, but kept search­ing
for a position that was international in
scope. He responded to an international mar­keting
ad for a Caribbean/Latin America
salesman for a scuba equipment manufactur­er.
Although the ad was in English, Gruber
submitted his cover letter and resume in
Spanish. "I delivered the resume in person,
but had to leave it with the receptionist," he
said. "Luckily, the director of international
marketing, who was Cuban, liked the cover
letter/resume and called the next day. Without
knowing Spanish, and without taking the
risk, my resume might have remained in the
pile destined for the garbage can." Gruber
used his Spanish daily in sales, until he was
promoted to marketing manager and new
from their cultural understanding. Just
11 percent said they received no
advantages from cultural skills on the
job.
THE RESULTS
Many alumni said that their cultural knowledge
had helped them at work to:
product development manager in Asia. He is
currently vice president of marketing for the
Chicago Rush Arena Football Team.
Alumni reported similar opportunities
because of their language and/or cultural
skills - citing travel opportunities, overseas
assignments, written or oral recognition, pro­motions
and raises. A few, however, remarked
upon the tendency of U.S. companies to over­look
the advantages of these skills. One said,
"I believe American firms continue to disre­gard
the value of foreign language study and
cultural studies, and I believe American firms
will continue to do so at their peril and loss."
Another commented, "". My experience in the
U.S. corporate world is that language skills are
a benefit at the time of hire, but play very lit­tle
part in decisions regarding promotions
and surprisingly little in obtaining foreign
assignments. Of the 50 or so expats working
in European headquarters, none spoke
any European language (except English)
at a functional level."
Of the sample, 281 responded with
additional comments, defining the
competitive edge still further. They felt
the advantages of foreign languages
and cultures benefited them for a vari­ety
of reasons, such as being a critical
factor in getting a job, helping to gain
trust of others, increasing their effec­tiveness
on the job and creating more
job opportunities.
FEEL COMFORTABLE WITH PEOPLE AND CULTURE 86 %
"The findings dearly indicate that
businesspeople do benefit professional­ly
from knowing another language and
culture," Grosse said. "Given the tight­ness
of the job market and the state of
the global economy, the competitive
advantage of foreign languages and cul­ture
could help MBA students and oth­ers
in their careers. Maybe it's time for
other business programs to follow
Thunderbird's lead." •
UNDERSTAND THE BUSINESS ENVIRONMENT 77%
GAIN RESPECT AND CREDIBILITY 65%
FUNCTION BETTER IN COUNTRY 66%
REDUCE CHANCE FOR MISUNDERSTANDING 68%
WORK ON MULTINATIONAL TEAMS
ENHANCE NEGOTIATION SUCCESS
56%
53%
Executive Language Programs Flourish
Twelve years ago, SK Group, a South Korean conglomerate, realized
its executives needed superb business English and global manage­ment
skills to compete more effectively worldwide. To meet this need,
the company sent senior employees to Thunderbird's Executive
Education Language and Culture Center (TLCC) for four months of
business English training and global management skills. The relation­ship
continues to thrive today.
TLCC, one of the fastest-growing programs on campus, provides
culture and language training for both pre-MBA students and execu­tives
who need to conduct business in countries and cultures different
from their own. It offers more than 50 programs a year, induding pre­MBA
intensive language programs, GMAT and TOEFL preparation,
industry-specific language courses and cross-cultural training and
negotiations. The format ranges from one-on-one and small group
training to on-site, company-customized training of one day or more.
Beth Stoops, TLCC senior director, said participants' needs have
changed somewhat since she designed the pre-MBA program in the
early '90s. "At that time, students enrolled because they were required
10 THUNDERBIRD MAGAZINE FALL 2003
to increase their English overall before going to Thunderbird or other
MBA programs. Now, one-third of Thunderbird students voluntarily
attend before starting the MBA program."
A similar trend is developing with Executive Education participants
as high-profile Japanese companies such as Fujisawa, Asahi Glass,
Itochu and Nomura Research flock to the School's English as a Second
Language (ESL) programs. "The Center also does a lot of expatriate
and repatriation training," said Stoops. "Often, they are executives
with more than 10 years experience. They may be up for a promotion
or they're doing a lot more business abroad and need to get this ski ll."
And it's Thunderbird's reputation that attracts them. Stoops cited
the example of an executive from a major oil corporation who had
taken a four-week Spanish course at TLCC four years ago. He had the
opportunity to work in Cameroon, but didn't speak French. His boss
was stunned when he turned down an offer to learn the language in
France and instead chose TLCC, saying, "I want the Thunderbird expe-rience.
I want the faculty and the service TLCC provides." - TIL
Language students
such as Yun-Ching
"Allan" Lin '03 and
Svetla Novoselska '03,
who assisted with
Professor Grosse's
study, will benefit
from services offered
by the new Garvin
Center.
New Garvin Center Supports School's Roots
L t. Gen. Batton Kyle Yount's dream is
alive and well, thanks to Samuel S.
Garvin '88, and his wife Rita, whose
recent $5 million gift has helped establish the
new Garvin Center for the Cultures and
Languages of International Management.
"Our vision is for the Garvin Center to be
the premier institute for the study and teach­ing
of intemationallanguages and cultures as
they relate to business," said Garvin.
A resource for students, scholars, faculty
and executives, the Center will serve as a clear­inghouse
for research on topics such as lan­guage
instruction and its role in business;
instruments for assessing global language
competence; and the impact of language
competence and cross-cultural management
styles on business success. Expected to attract
additional best-in-class facuity, the Center
will be housed in the former International
Studies Building when it formally begins
start-up operations in fall 2003.
"The Center will sponsor activities that
reinforce Thunderbird's heritage of integrat­ing
business, language and culture within a
tripartite curriculum, helping to further dif­ferentiate
us from other MBA programs," said
David Bowen, Ph.D., dean of faculty and pro­grams.
Bowen heads the faculty steering com­mittee
that is developing the business plan
for the Center's operation. "We are particular­ly
interested in research that is relevant to the
practice of management," he said. "We want
the Center to be strong in scholarly creden­tials,
but we also want to have information
that will help managers do their cross-cultur­al
job better. Sam and Rita's gift allows us to
do that. We're lucky to have people who truly
believe in Thunderbird's mission behind us."
The donation positions the Garvins as
Thunderbird's most generous cumula­tive
donors to date. Garvin is the
founder, chairman and CEO of Con­tinental
Promotion Group Inc., a multi­million
dollar commercial fulfillment
business with clients in 26 countries.
Garvin credits the analysis, German lan­guage
and culture skills learned at
Thunderbird in helping him foresee
how the European Union and the euro
would benefit his business. A member
of the Thunderbird Board of Trustees,
Garvin, along with wife Rita, previously
donated $1 million to endow the first
distinguished professorship in global
entrepreneurship in honor of faculty
member Paul Johnson, who advised
Garvin as he developed Continental's
business plan.
"Sam and Rita target causes that will
have maximum impact on Thunderbird
and on the community," said Richard
Tollefson '83, vice president for Institu­tional
Advancement and director of Develop­ment.
"This gift exemplifies Sam's talent for
language and business, as well as his commit­ment
to the Thunderbird mission and experi­ence.
The Garvins believe that the original
mission of Thunderbird, as stated by its
founders, distinguishes the School from its
competitors and is the key to its success."
"What differentiates the Thunderbird MBA
in International Management from a regular
MBA is the focus on languages and cultures
in addition to the qualitative business skills
of a regular MBA," Garvin explained. "These
skills were instrumental in my suc­cess.
I hope to help give the same
skills to future Thunderbird stu­dents
for many years to come."
The Garvins plan to play an
active role in the creation of the
Center. - TIL
25% of alumni
responding to
Grosse's SU71ley
said that the next
language they
would study - if
they had time -
is Chinese.
Philanthropists
Sam '88 and Rita
Garvin will playa
key role in the new
Center's development.
FALL 2003 THUNDERBIRD MAGAZINE 11
BY SUSAN COFFROTH
Strategic Plan Calls for Shift in Programs, Resources
Welcome to 2002, when the educational landscape is characterized by uncertainty. Student demographics are changing. Enroll­ment
pressures are increasing. and job opportunities for graduates are waning. Technological changes in pedagogy and distri­bution
demand attention in order for institutions to remain competitive. Global competitors are emerging but so are alliances.
The part-time graduate management field is blossoming. The relevance of "international business" focus is changing. The only
thing that is certain is continued political, social and economic uncertainty.
Following page, top:
At a special dinner
gathering in April,
Thunderbird Board of
Trustees members met
with students to
discuss School
programs and future
direction.
"Educating Executives for a Tumultuous Global Environment: Risks and Opportunities"
(A white paper presented at the Thunderbird Global Business Forum and Archamps Campus Expansion Dedication Summer 2002)
It is August 2002 and against this backdrop, Thunder­bird
is embarking on a yearlong strategic planning
process that will shape the School's future for the next
five years.
It's a comprehensive process that involves all of the
School's stakeholders. It begins with strategy sessions
with the Thunderbird Board of Trustees, the Thunder­bird
Global Council, the Thunderbird Alumni Associa­tion
Global Board, the Thunderbird Europe Board and
students. Along the way, it involves faculty and staff and
alumni councils around the world.
Months of meetings with stakeholders and numerous
rewrites and revisions later, the Strategic Plan 2003-2008
chans). "A picture was emerging that would shape the
School's future," said CFO/Chief Administrative Officer
Tim Propp. "Our forecast pretty well laid out our chal­lenges,
including a homogenization of international
management education that threatens Thunderbird's
niche; minimal growth in the full-time MBA market; a
shifting MBA customer base toward working profession­als;
a need for flexible educational delivery methods."
Each of these challenges was factored into the four
strategy statements that comprise the core of the plan.
• Brand Thunderbird as the industry standard world­wide
for international management education.
"This statement articulates how important it is for all
is presented at the April 10,
2003, Board of Trustees meet­ing
in Glendale, Ariz., where it
is approved.
To aggressively consolidate and confirm of us in the Thunderbird com-munity
- Board members,
administration, faculty, staff,
alumni and students - to
assume the role of being a
brand owner," said Herberger.
"Success in branding depends
upon all of us working togeth­er,
with consistent, targeted
"In April 2002, the Board
reviewed and renewed its com­mitment
to Thunderbird's
international focus, " said
Board of Trustees Chairman
our position as the world's premier
graduate school of international man-agement
and a leading source of talent
and information for global managers.
Barbara Barrett. "The strategic THE THUNDERBIRD VISION
messages."
plan sustains and enhances the Thunderbird Experience:
That is what makes this strategic plan so important."
That the process was a collective effort is evident. "The
beauty of this plan is that there is no single author," said
President Roy A. Herberger, Jr. "We took this plan to
Hong Kong. to London, to Monterrey, to France and back
to the United States, and it reflects our stakeholder
groups - all of them."
The foundation of the plan is the Shared Beliefs (see
Shared Beliefs sidebar) . "These statements were like a
mantra that we repeated to ourselves along the way," said
Herberger. "They were our starting point. n
While the Shared Beliefs served as a starting point, the
research drove the resulting strategy statements. "This
particular plan has more data driving the strategies than
any plan I've been involved with in my 20-year career,"
Herberger said.
The data looked at competitors, enrollment projec­tions,
product mix and revenue opportunities (see
• Enhance the perceived quality, value and differenti­ation
of the full-time MBA in International Manage­ment
program in the eyes of students, employers and
other stakeholders.
According to Dean of Faculty and Programs David
Bowen, enhancing the full-time MBA program requires
an across-the-organization effort. "We want a program
that delivers valuable, unique and tough-to-copy benefits
to students and employers. Our real edge on uniqueness
is the international piece, so we're trying to emphasize
that in the course content and competencies of the facul ­ty
we hire."
For Kay Keck, vice president for Student Services and
Program Support, whose oversight includes Admissions
and the Career Management Center, this statement has
broad impact. "On the operational side, this is a shared
responsibility with my organization in concert with the
faculty because the academic curriculum and classroom
delivery are really the heart of the program. Every one of
12 THUNDERBIRD MAGAZINE FALL 2003
our areas is a brand touch point that can either reinforce
or erode the program in the mind of the students."
• Diversify programs and delivery methods with grow­ing
emphasis on the worldwide working professional
management education market.
Jerome Couturier, who recently joined Thunderbird as
senior vice president of Executive Education, sees oppor­tunity
and challenge in this strategy statement. "Together
with custom programs, the Executive MBA market is pre­dicted
to be the fastest growing market segment over the
next few years, with annual growth rates between 15 and
20 percent. (See chart at right.) Within this segment, the
custom EMBA sub-segment arguably shows even more
potential. Entrepreneurship and flexibility will be key
factors for any school wanting to ride on this wave, and
Thunderbird exhibits both."
• Focus global expansion from three strategic hubs/
regions - Glendale (Americas), Archamps (Europe,
Middle East, Africa), Asia location (to be determined).
"One could argue that the most successful partnership
Thunderbird has ever had is with the French Haute
Savoie Region, with the establishment of our Thun­derbird
Europe Campus at Archamps," said John Seybolt,
senior vice president for Institutional Advancement and
Alliances, who oversees more than a dozen alliances
between Thunderbird and other educational institutions
and organizations throughout the world. "This is certain­ly
a model partnership, and one that is instructive as we
focus our global expansion from the three hubs we have
targeted," said Seybolt.
Another successful program partnership he notes is the
Global MBA for Latin American Managers, which
includes collaboration with ITESM (Instituto Tecno­l6gico
y de Estudios Superiores de Monterrey). "This is a
partnership with arguably the finest business school in
Latin America," Seybolt said. "The success of the program
builds on the reputations of both institutions."
For him, alliances must be developed with care,
depending upon the program and the region of the world.
"Looking at business schools that have been relatively
successful or unsuccessful in global expansion, it has
exclusively been through a strategic partnership that the
successful schools have realized their successes. The fail­ures
have consistently been where schools have 'gone it
alone: The situations are too complex as well as con­stantly
changing to allow a school (or any organization
for that matter) to go it alone."
While the plan recognizes sig-
ENROll MENT TRENDS IN IJ S MBA pROGRAMS
Headcount
400,000
300,000
200,000
100,000
a
1995 2000 2005 (est) 2010 (est)
MBA Full-time
• MBA Distance
• MBA Part-time
EMBA
Source: National
Center for
Educational Statistics,
"Projections of
Education Statistics
to 2012."
The National Center for Educational Statistics projects flat
full-time MBA enrollment and growing part-time, distance
and EMBA enrollments over the next 10 years.
IJ 5 MBA MARKET PRODlJCT MIX
Percentage
100
75
50
25
a
T-bird Benchmark Target All MBAs
• MBA Full-time
• MBA Distance
• MBA Part-time
EMBA
Benchmark:
USC, Babson,
S.Cal., Georgetown
Target:
Duke, NYU,
LBS, lnsead
Thunderbird's product mix has been heavily reliant on the
full-time MBA program, while benchmark and target schools
such as USC, Babson, Southern California and Georgetown
have increased their part-time MBA offerings.
nificant challenges, it also rec­ognizes
Thunderbird's key
opportunities. Among them is
the Archamps campus, a state­of-
the-art, strategic alternative
to the Glendale campus, and
the School's success in recruit­ing
faculty and staff. Add to that
We develop high-potential individuals
to serve the advanced management
needs of international enterprises,
THUNDERBIRD'S MISSION
FALL 2003 THUNDERBIRD MAGAZINE 13
The strategic plan calls
for building upon and
growing the School's
competencies in the
working pro fessional
markets.
Thunderbird's pOSltlon as the only major graduate
school with operations on four continents working in
pannership with schools, governments and corporations.
The plan identifies other key opportunities, induding
Thunderbird's history of success with working profession­als
as evidenced by the highly ranked Executive Education
offerings; a No. 1 ranking that can be leveraged across
multiple markets; and a capital campaign that can be
focused on requirements of the plan.
That last opportuniry will help mold and drive the
School's fund-raising priorities, said Richard Tollefson
'83, vice president for Institutional Advancement and
director of Development. "The strategic plan is a key
component in defining the vision for Thunderbird's
future. To fully implement this plan will require tens of
millions of dollars over the next five to 10 years. The
Development Office is aggressively working to secure the
financial resources needed to make this plan a success."
A number of cross-organizational groups are working
on putting the plan into action. One of those groups is
focused on operational effectiveness. "Our charge is to
get in front of problems that stand in the way of the pro­gram
being satisfying to students, employers and faculry:'
said Bowen.
The plan calls for immediate actions. Among those
taking place are finalizing strategies and business plans
for Thunderbird Europe and Asia; implementing a mar­keting
plan to attract more applicants to the full -time
degree program; developing and putting in place full ­time
program qualiry initiatives; enhancing faculry
development in delivery methods and market segments;
continuing market studies to assist in the design of
blended programs; and developing an institutional mar­keting
plan.
"This is a flexible plan," Herberger said. "The result
will be a new Thunderbird. I think the key is that we're
trying to do for our current students what we've always
tried to do for them - provide the best international
management education. It's a cherished heritage and we
want to be reminded of it." •
STRATEGIC PLAN EMBODIES
THUNDERBIRD'S SHARED BELIEFS
We believe in the virtues of a global
economy and the rewards that globalization
brings by serving a global, open society.
We believe that valuing cultural diversity
fosters open, peaceful, and mutually beneficial
relations among the world's people.
We believe course content with a global
context is core to our curriculum, and that
the School should promote and support unique
content creation in everything we teach.
We believe that global diversification -
sites, programs, alumni networks, and learning
experiences globally - is important
to our unique "global context."
We believe that our students and clients join a
worldwide network where people take care of
each other in a quality way with a shared
sense of purpose.
We believe our "global context" offers a
unique value added experience to our
students and clients and is a means for
differentiating and securing our brand image
among a growing set of competitors.
THUNDERBIRD PRODUCT
REYENUE MIX· 2002
THUNDERBIRD PRODUCT
REYENUE MIX· 2008
Full-t ime Oegree
Working
Professionol
Non-degree
Working
Professional Oegree
14 THUNDERBIRD MAGAZINE FALL 2003
BY MELISSA CRYTZER FRY
Luis Villanueva '02 Trades the
Cockpit for the Board Room
5 om,tim" thin" jn" f,li into p''''
For Luis Villanueva '02, a string of events unfolded that put him in
the right place at the right time - seated in a Thunderbird Executive
MBA dassroom every other weekend - just minutes from his new
workplace in the Arizona skies surrounding Luke Air Force Base.
When Villanueva, an F-16 instructor pilot, was transferred to Luke
Air Force Base in Phoenix, he knew it was time to consider a career
change. After 12 years stationed in five countries, he had hoped to
transition out of the military and into a civilian role. "If I didn't make
a change, I saw myself in the military for 10 to 12 more years with four
or five moves all over the world," said Villanueva, who admits he has
always been drawn to things international. Born in the United States,
but raised in his mother's native Spain since age 8, the father of two
decided it was time to take the leap.
What he didn't know was that an international business school,
with Air Force roots and a founding mission based on training officers
in international business, was located only 20 minutes from his new
Villanueva, pictured assignment. The EMBA program also offered
during the EMBA trip to a flexible Friday-Saturday schedule that didn't
China is no stranger to interfere with flying and complemented the
overseas experiences. master's degree in international relations that
After military training in Villanueva had earned from Boston Uni­aeronautical
engineer­ing
at the Air Force
Academy and pilot
training in Texas, he
served as a cadet in
France, a personnel
management officer in
Germany, an F-16 pilot
in the Republic of Korea,
and a mission com­mander
in 1999 during
Operation Allied Force
in Italy.
versity's European Campus in 1996.
"( thought, this was just meant to be," said
Villanueva. But the uncanny coincidences
didn't end there. In his Thunderbird dasses,
he met Brian DeBruin '02, a dassmate with
whom he had an instant connection; DeBruin
had graduated from the Naval Academy in
1991 - the same year Villanueva graduated
from the Air Force Academy.
Today, both work for Marsh Inc., a Fortune
200 global risk management consulting firm.
"We worked on a project together throughout
the EMBA program, and in the interim, 1 got
exposed to Brian's employer, Marsh," said
Villanueva. "I knew I wanted to work with a
professional services firm with a global pres­ence."
As luck - or fate - would have it, Villa­nueva
deftly landed his first position with
Marsh and earned the corporate title, ACE, an
acronym that, coincidentally, has military
connotations. According to Webster's, an ace is
a combat pilot who has destroyed enemy
planes. Although Villanueva has lived the mil­itary
definition - flying in combat with night
vision goggles and teaching students to com­mand
laser guided bombs - his current posi­tion
stands for Associate Client Executive.
ACEs are high-potential MBAs, fast-tracked within Marsh and men­tored
by senior management. Villanueva's mentor is T-bird Greg
Martin '84. "Luis brings a unique combination of life experiences and
skills to the firm, induding the leadership experience, team focus and
global perspective that are so important in helping our dients navigate
the new realities of risk worldwide," said Martin.
Villanueva credits high-caliber professors, coursework and curricu­lum
for making the transition less difficult. "I needed exposure to peo­ple
with business experience," he said. "The ability to interact with exec­utives
with up to 10 years of professional experience in various fields
really contributed to the EMBA learning experience." Class case studies
also taught relevant lessons that Villanueva uses in his current role as
he analyzes, quantifies and solves company risks from a financial, oper­ational
and strategic perspective.
And, of course, Villanueva says that military training also prepared
him for the business world. "If you are faced with a challenge in the
military, you develop a structured plan to resolve it," he said. 'These
skills are very transferable to the business world."
Villanueva will apply these skills to another personal challenge he
faces: a yearning to soar through the skies - one that began when he
was a young boy. "I definitely plan to do some civilian flying," he
said. "This time it will be for pleasure - not part of work." •
FALL 2003 THUNDERBIRD MAGAZINE 1S
Travel Assistance
Services Save Lives
and Corporate
Dollars
March 20, 2003, is a date Tony Young
'03 won't soon forget.
His trip to Beijing, China, as one of 33
EMBA students attending a tour of the area's
businesses and cultural sights quickly turned
into a seven-day blur - ftIled with glimpses
of hospital personnel, IVs and doctor-accom­panied
private jets.
A routine, preventative colonoscopy 10 days
before departure had resulted in uncontrol­lable
internal bleeding, leaving Young and his
wife Barbara, who had accompanied him on
the trip, with a handful of additional consid­erations.
They were in a foreign country where
medical insurance was accepted,. but cash
upfront and reimbursement later were the
norms; credit cards weren't accepted for med-
MedAire's Global Response Center is the prime
point of contact for business travelers who expe­rience
medical and security emergencies. Clients
with medical emergencies have direct access to
u.s. -based board-certified emergency room
physicians who provide immediate consultation
through telemedicine technology.
Greg Eaton '93 conducts a client orientation ses­sion
at a MedAire-owned Global Doctor facility
in Chongqing, China. Global Doctor has medical
clinics in China, Thailand and Indonesia.
16 THUNDERBIRD MAGAZINE FAll 2003
ical emergencies; they didn't speak Mandarin
Chinese; and most frighteningly - the SARS
epidemic was in its infancy, making the possi­bility
of a blood transfusion questionable.
Fortunately, Young was covered through
travel assistance insurance provided to all
EMBA students as part of their tuition. After a
quick call to travel assistance provider Inter­national
SOS and insurance carrier AIG, he
found himself in a Beijing ER and later trans­ported
by a medically staffed private jet to a
hospital in Hong Kong, then finally evacuated
to the United States where he recovered fully.
Not all travelers are as fortunate - or pre­pared
- as Young, though . Nor do they
always have thousands of dollars in available
cash for medical emergencies, or the proper
travel tools.
"International terrorism, crime and SARS
have put different demands on companies,
but also on individual travelers," said Beijing­based
Greg Eaton '93, MedAire Inc. general
manager for Asia. His employer, like Inter­national
SOS, provides corporate travelers
with travel assistance services that run the
gamut - from medical evacuations similar to
Young's to overseas physician referrals and
pre-travel security advice.
"I travel frequently to Jakarta," said Eaton,
who uses assistance services himself. "Prior to
going, I access the latest security data and
speak to security specialists who can advise
me on the level of threat in a region." Recent
terrorist attacks such as 9/11 and the Bali and
Bogota bombings have, indeed, changed the
way expatriates and business travelers con­duct
business.
Travel assistance companies - which
emerged in response to widespread corporate
globalization and the inability of embassies
to meet the influx of traveler needs - deliver
peace of mind by providing a single emer­gency
phone number that can be used any­where
in the world. "As companies globalize,
larger bases of expatriates reside in foreign
cities and capitals," said Robert F. Valente,
MedAire vice president, security and global
operations. Travel assistance companies, he
explained, are meeting those needs by pro­viding
24-hour emergency hotlines, as well as
legal support for travelers who might find
themselves unjustly arrested. · Over the past
15 years, other issues have come into play -
like international terrorism - creating a need
for security setvices," Valente said. 'These
events have created a demand for information
regarding a destination's safety, which has
also led to emergency response and crisis
planning for companies."
"You put a plan in place and then you stick
to the plan," said James "Dusty" Scott '96,
assistant vice president for Academic Opera­tions
and risk management consultant. In
May 1998, he assisted in the evacuation of
Indonesian citizens and employees of multi­national
corporations when civil unrest
erupted in Jakarta.
Like Scott, risk management compan ies
and consultants often focus on crisis plan­ning
and frequently have firs t-hand experi­ence
or live within a particular regio n. Often,
they are called upon by travel assistance com­panies
to share their local expertise. Scott,
retired military with a master's degree in
national security affairs, was assigned to the
U.S. Embassy in Jakarta as a foreign area offi­cer
from 1992 to 1994.
"In Jakarta, many didn't fo llow the estab­lished
plan - which became extremely costly,"
he explained. Some employees attempted to
book themselves on several aircraft with the
intent of taking the first available flight. What
resulted was chaos - overbooked flights,
schedule changes and hastily scheduled private
chartered jets that cost companies mill ions.
Emergency evacuation and crisis plans vary
from company to company, but they consis­tently
provide preventative strategies and a
roadmap for employees to follow in the event
of a crisis. Scott explains, if an evacuation is
necessary, employees must know if they
should go directly to the local airport or a pre­determined
meeting space - or whether a
helicopter will come to them. What will they
do if they see rioting in the streets? If expatri­ates
abandon their homes, who will protect
their properties from possible looting? Such
questions are addressed with effective risk
planning. Employees also often experience
trauma after an evacuation, and the plan
'"
Dusty ''lames'' Scott
'96 assisted in the
evacuation of corpo­rate
employees from
Jakarta, Indonesia, in
May 1998, where
demonstrations
resulted in clashes
with security forces.
should include support
for emotional prob­lems.
Some consultants
will take planning a step
further to include mock
evacuation sessions that
ensu re employees are
prepared.
"As T-birds, we travel
all the time," said Scott,
~ who continues to work as a consultant out-
~ side of Thunderbird. "No matter where you
(9j go, something can happen - civil unrest, a
~ natural disaster. It's best to be prepared."
~ "MedAire's focus is on prevention and
~ preparation," said Eaton, who continues to
explore medical facility expansion in Europe
and Asia based on client needs. "We enable
the business traveler or expatriate to take per­sonal
control of his health and safety."
Corporate travelers have access to online
country reports that include health and secu­rity
alerts, emergency and travel p lanning tips,
approved medical clinic contact information
and direct access to medical and security
advice from U.S.-based physicians and securi­ty
special ists. "Better informed and prepared
travelers can minimize major incidents and
hopefully avoid evacuations," said Eaton.
"That equates to corporate savings."
So - if you've lost your passport, find
yourself in the middle of terrorist activity or
experience a medical emergency and don't
understand the local medical system or speak
the language - travel assistance companies
can provide a tremendous setvice.
But perhaps the best illustration of the
assistance company's value-add is Young's
experience. "If you do any type of travel
abroad." he said, "or if you are anywhere out
of the country, you need to have this type of
protection for the peace of mind it provides."
A small price to pay, in his opinion. •
- 1n/I